New sales concluded as futures are on a rally.

Ginners are slowly and uncertainly increasing their sales of the new crop targeting to improve their average price. The NY futures are on a rally while physical prices are following; therefore it is considered as an opportunity for them to commit some more volumes in order to be ready to pay better seed cotton prices to growers.

Buyers are mostly international merchants and few Turkish spinners. In the beginning of the week sales were concluded at levels of 103 c/lb FOT and as the market was getting stronger we reached almost 105 c/lb FOT. As prices are very high and NY futures seem volatile with a possibility to correct soon, many ginners are hesitating to sell directly to Turkish spinners. A potential strong correction may bring serious problems in contract implementation.

Sales of the new crop are estimated over 75,000 tons which depending on the lint production can be about 30- 35% of our crop. This percentage is considered to be very high for this month of the season. Bearing in mind that about 15% will be the domestic consumption, the unsold balance for exports can be about 50% of our new crop (115-125,000 tons depending on yields).

Kind regards