Crop wise, so far we progress under ideal weather conditions.

There are not any reports of green worm and the cotton plants are well developing.

Following a business trip to the cotton cultivating areas we realized that fields are in very good shape due to the rainfalls of May and June. In addition, this season we didn't have any replanting and in general weather so far has not brought any stress to cotton plants.

Growers are waiting for a hot and dry August so that cotton bolls will open easily. Provided we donΆt experience something unexpected it is very likely that yields will be much higher from previous season. Consequently, the reduction in lint will be less from the reduction in acreage.

Our estimate for lint cotton production remains at levels of 220-230,000 tons although some other sources believe that we may be higher than this figure. We prefer to stay a bit conservative as August is a critical month for yields…

Business wise, so far about 14k tons of the coming have already been sold. Buyers are international merchants (biggest part) and some spinners from Pakistan and Turkey with their option to fix (smaller part). Latest basis that biz was concluded was at 400 on Dec for hvi 41. In general there is a feeling, on behalf of ginners that can sell forward, that during October the basis may be seriously higher due to increased demand from Turkey and possibly Egypt. In that case ginners might be trapped in their price while not trustworthy ginners (defaulters) may finally get the better prices form direct channels. That's their fear for not selling at lower basis...

Kind regards