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New sales concluded as we get close to full
swing harvesting.
During the last ten days demand has increased
mostly on behalf of Far East merchants, who took the biggest share of latest
sales. As soon as NYF fall below one dollar it seems that spinners in Far East
started buying some quantities and merchants were able of paying good levels to
ginners either on fix price or on call (close to even Dec 11). Other
traditional international merchants got also more active but their purchases were
less in volume.
Contrary Turkish spinners, who are focused on
their crop, are still out of our market or passing prices below ginner's
expectations. In the beginning of the week there were rumors of new sales to
the Egyptian market at levels of 108 CIF Egyptian port.
Harvesting has started in most areas but mostly
on the so called dry fields (less irrigated). Since it hasn't rained quality is
very nice although we will be able of getting a more clear view in the
following two weeks when the irrigated fields will be harvested and delivered
to ginning mills. We can say that so far the crop looks very promising both in
terms of quality and quantity.
Calculating a production of lint at 300,000
tons we estimate that about 10% is already committed. This figure includes also
the rolled over quantities from last season. The domestic consumption will be
of course limited (possibly 20,000 tons) although some mills will consider
their operation strategy in the coming weeks. Yarn prices fluctuations and low
credit from Greek banks are limiting quantities.
Kind regards,
Yiannis Papadogiannis
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