Greece : Falling NY Prices & Weak Dollar Affect New Business
Source: CNTEXTILE Date: 2007-04-17
HECOT Weekly Report 13/04/07. Falling NY prices and weak dollar are affecting new business. The falling sessions of NY during the week as well as the unfavorable eur / dollar rate didn’t leave a lot of room for new business.
The traditional asking levels of ginners (1 Eur / Kg) seem completely out of the market while the rate is at 1,3520 levels.
As a result only few new sales can be reported, as usual on behalf of Turkish spinners who are in need of cotton prompt. Apart form that, few merchants who were short bought some stocks in relative high prices.
Regarding remaining stocks, right now we are at about 90,000 tons of lint cotton. The greatest majority of it stands at the range of low 41 color to good 51 color.
It appears that ginners are being pressed to sell only for cash flow reasons and not because the given prices leave a good profit margin. As a result the financially strong ones will not rush to sell especially in the recent falling market.
Price wise ginner’s asking levels remain at the usual levels of 57-58,00 c/lb FOT depending on the quality offered.
