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    Expected Decrease In Cotton Planting Area In Greece

    2008/5/13 15:21:00 27

    Cotton Planting Area Is Expected To Decrease In Greece.

    In the past 10 days, the Greek market is quite active, and there are three new news about sales in the market.



    1) the price of new cotton in December 08.

    As the market is weakening, prices seem to be more attractive to many cotton processors. But because the expiration date of the 08 contract in December is still early, most of them believe that they still have the opportunity to see "fair" prices.



    2) delivery in July 08.

    Some cotton processors have so far not sold a lot of cotton. Now they decide that if they receive the payment as soon as possible, they will fulfill part of the 08 year July contract.



    3) most of the direct sale of ginning merchants to Turkey cotton mill.

    Some factories in Turkey have decided to purchase some "buy and sell" goods at a price level of 163-164 cents / kg, FOT price terms.

    These price levels seem to be very attractive to cotton processing plants, mainly because of the strong dollar.



    As a result, these recent pactions have reduced the current inventory and should now be at 135000-140000 tons.

    But for the month of this year, inventories have reached a record high, and most of them may be pferred to next year.



    New cotton planting is in progress, and the weather is normal. So far, there have been no serious problems.

    Everyone is talking about that the cotton area may be reduced, and the area of wheat and corn may expand, but no one can tell where the reduction will be.


     

    The biggest possibility is that the cotton planting area will be reduced by 25% in the new year.

    Some agencies have previously predicted that the planting area will be about 260000 hectares.

    If the weather is bad, the lint yield may be 265000 tons.



    Finally, all cotton processors are looking forward to new R & D reports. At present, they are reluctant to make quotations.

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