The price of cotton with the bonuses attempts to fly above 1 euro

The price of cotton with the bonuses attempts to fly above 1 euro
The price of cotton with the bonuses attempts to fly above 1 euro

With the cotton stock price limited to a range between 115 and 117 cents a pound, the price for cotton in the Greek market has strengthened in the last 24 hours thanks to the euro/dollar exchange rate, surpassing 98 cents a kilo, having triggered a new round of pre-sales but also an intense competition between ginning plants to secure raw material. It is worth noting that in the last hours the stock market price is under pressure, with the price for the crop mainly favored by the exchange rate difference.

The price of cotton tries to fly above 1 euro with the bonuses, the exchange rate with the dollar favors pre-sales

In fact, together with the quality and variety bonuses, the price exceeds 1 euro per kilo. Close to 1 euro, without premiums, are the prices ensured by groups of producers who do not charge commission to their members.

Of particular interest is the proposal of the Karagiorgou gins, which offer a closed price of 98.5 cents per kilo for delivery to the door of the gin, while +3 cents per kilo is the quality bonus. At 9 minutes the seeding price is formed. At the same time, the company gives the possibility to reserve 94.5 cents per kilo, as an open price, which can be fixed down the road, in case the market establishes higher price levels, with a penalty of 4 cents. On the other hand, the Enipeas Agricultural Cooperative in Farsala gives a closing price of 99.5 cents per kilo.

The picture from the domestic cotton belts has ginners on the phones trying to book quantities with well-organized producers while offering favorable pre-sale terms in an attempt to “beat” the competition. Thus, the prices that are heard show minor differences depending on the type of contract and also the quality premiums. The anxiety of the ginners described by interlocutors of Agrenda and Agronews regarding pre-sales seems to be firmly in line with the actual conditions of the market. The opportunity for a pre-sale price close to 1 euro or above (along with the variety/quality bonuses) cannot be taken lightly. And this is because the data in the global economy look ominous, especially after the declarations of the US central banker, Jerome Powell, last Friday to maintain the aggressive policy of the Central Bank, which is expected to announce a new increase in interest rates in the coming days.

In the case of cotton, there is no doubt that the fundamentals remain on this basis supportive of its price. The small harvest expected in the US due to the drought damage suffered by the crop in Texas is becoming a good reason to strengthen the price. At the same time, problems are also looming in India’s upcoming crop due to heavy rains at the last stage of plant growth and insect attacks. On the other hand, concerns about the course of the global economy, which can affect demand for fiber, cannot be ignored. The last time demand stress outweighed supply was last June, when the cotton market lost 50 cents/lb in almost a matter of weeks, with December contracts falling from 132/134 cents to the zone of 80 cents. Perhaps for this reason, the international price of cotton, despite the decline in US stocks, remained at the same levels.

Source: Agronews.gr

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