New crop sales reaching 15k tons
Starting approximately in February, new crop sales have reached about 15k tons. Basis started at slightly less than 600 on Dec FCA, for HVI 41 1 1/8, and quickly moved higher as international merchants were building their position. The limited number of A1 suppliers in combination with the active interest by almost all the traditional buyers of our crop, have set the Greek basis at 700 on Dec 18 net to the ginner.
Planting intentions for the 18/19 season are showing an increase of about 10%, which means that new crop may reach the 290-300k tons of lint. Of course it is very early to make estimates and as usual we will depend on weather conditions.
Regarding current crop unsold stocks are about 40k tons and in the hands of few ginners. Demand in general is rather weak and only the Egyptian market is constantly supporting our strong basis. At the same time, due to the relative low stocks, the slow pace of sales does not raise any concern to the ginners who anticipate that in worst case it will take one or two months more to liquidate all their stocks. Current crop basis stays at levels of 900-1000 on July 18 FCA for the high grades.
Kind regards, Yiannis Papadogiannis