Cotton cultivation is gaining back

In the private sector, most sales have been concluded on an on call basis starting from levels of even (three months ago) up to 200 on Dec (most recent basis). A small part of these sales has already been fixed by ginners who seemed interested in getting prices between 77-80 c/lb FOT. In addition, during previous week some sales to Turkish spinners were concluded at levels of 180 c/kgs FOT, however, with the market correcting within this week Turks have stepped back.

The good news for ginners comes from the euro / usd rate. The specific parity is becoming on daily basis favorable for ginners and in general Greek exports. In addition, due to increased lint prices, cotton cultivation in our country is gaining back some of its appeal. Right now we are at the early stage of plantings and so far it is estimated that acreage will increase by at least 15%. In other words it is more likely that cotton acreage will be about 250,000 hectares.

Lastly, cotton growers will target for high yields not only because of the increased lint prices but also due to the recent application of the restriction to reach a minimum yield in order to receive the coupled subsidy.