Silent mood in Greek cotton market following Christmas holidays

27 Dec '06

2 min read

Thrakika Ekkokistiria S.A. released the GREECE: HECOT Weekly report Dec 22, 2006. Another slow week in our market ended up. It has been a couple of weeks that we haven't heard of any new big sale either to merchants or spinners.

Ginners maintain their high asking levels (59 - 60 c/lb) and it is only few clients who would be ready to pay such prices provided they get a premium quality.

As a result, ginners are keeping their stocks for the new year, endeavoring that the market will firm up a bit and they will manage to sell their cotton at more satisfactory levels. Keep in mind that although the prices look to be on the high side, ginners are targeting at a tight profit margin.

It said there is silent mood in the Greek market following the Christmas holidays.

To be more specific, lately ginners are fixing the open seed cotton prices to the farmer. It seems that the production cost once again couldn't be held at low levels, and barring in mind the weak dollar, ginners are having a cost ranging from 56,00-58,00 c/lb depending on region and quality delivered. On this unfavorable situation if someone adds the 'on call' sales (reaching 30% of total production) based on Dec '06 or Mch '07, he will easily justify ginner's asking levels.

Regarding quantity, according to several sources, the available cotton for sale is about 120,000 tons. Have in mind that lately some ginners are taking delivery of seed cotton that was stored in the warehouses of farmers, but the volume for this season's 'warehouse cotton' is on the low side.

Thrakika Ekkokistiria S.A.

More Thrakika Ekkokistiria S.A News... More Textiles News - Greece...