Getting close to harvest
Harvesting is about to begin in few ‘early harvested’ fields of Greece. As usual the so called dry fields come first and then after couple of weeks the normal irrigated ones. The majority of growers is happy with the status of the crop and believes they may get fair yields this season. Of course we need sunny weather for the coming weeks so that picking up is not paused and affected by rainfalls. The weather forecast is rather optimistic for the coming week with sunny days and high temperatures.
Quantity wise it looks that the target of 250k tons of lint is conservative and provided weather remains favorable we may reach between 260-270k tons. Out of this quantity about 65k tons have already been sold forward mostly to international merchants.
Basis wise, the strong volatility of futures has prevented ginners to sell more. Last week they were surprised by the very strong rally and sold only in the case that they would get the 82 c/lb FOT for hvi 41, or min 700 on Dec 17. This week, following the strong correction, having already seen levels of 80’s, they prefer to step back till market stabilizes or offer 800 on Dec 17 net to ginners.
Kind regards, Yiannis Papadogiannis