Pessimistic feeling on the Greek market following several negative factors.
For the last one month ginners have been pessimistic towards this season influenced mostly by the following well known reasons:
• The very weak dollar is escalating their losses on a daily basis. Have in mind that several ginning firms are caring rather large amounts of dollars on their accounts from the previous season.
• Cotton growers are not delivering easily their seed cotton and even if they have, they do not fix the selling price.
• The prices of seed cotton that have been paid so far are not being covered by the recent raw cotton prices. Please note that many ginners calculated their cost based on cotton seed at 300 Eur/Tons, which is actually very optimistic figure.
• The first estimates on the altering of crops in Greece, from cotton to wheat or corn, are placing a drop of about 20% on cotton acreage. We remind the official acreage this year was 370,000 ha.
Apart from this gloomy news, there are not many things to report on our market. Ginners are not satisfied with the levels that either merchants or Turkish spinners are paying.
As a result the only ones who appear as active buyers are local spinning mills (1.03 Eur/Kgs FOT) or some Turkish spinners in areas close to Istanbul. In terms of available quantities right now we can calculate as follows:
320,000 tons production
-30,000 tons so far committed
-70,000 tons domesticconsumption
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220,000 tons left for exports
As written in previous week's reports, ginners still don't feel pressed to sell since they have not yet paid the growers. It is estimated that during December many farmers will fix their prices of seed cotton and get paid. Therefore, many ginners will calculate accurately their cost, start paying growers and become more aggressive sellers.
Thrakika Ekkokistiria S.A.
marketing@alchempro.com
