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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


06 December 2012

USDA GAIN: Turkey Cotton and Products Update - December 2012USDA GAIN: Turkey Cotton and Products Update - December 2012

The MY 2012 Turkish cotton crop is now projected a 410,000 hectares and 600,000 MT (2.7 million bales). Despite a higher than projected planting area in the Aegean region, high heat waves, floods and repeated insect attacks during the season adversely affected yields. High domestic production in MY 2011 caused imports to decline roughly thirty percent to 518,000 MT (2.3 million bales). However, MY 2012 imports are expected to recover and reach 750,000 MT (3.3 bales) as a result of increase domestic consumption and a lower local crop. US exports were about 252,000 MT (0.9 million bales) in MY 2011. Availability of GSM-102 Credit Guarantee Program played an important role in U.S. exports to Turkey, where total registration reached US$ 160 million during FY 2012.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

Production

MY 2012 cotton area and production are now estimated at 410,000 hectares and 600,000 MT. Planting and production were higher than early projections in the Aegean region, which compensated for losses caused by the late season rains and floods in the Southeast Anatolian region. Excessive rains early in the season in some regions, high heat during summer months, and repeated insect attacks all contributed to lower yields.

Available information on ginning for the last two marketing years indicate that an increase in harvester picking has also increased ginning yields, pushing total production to 470,000 MT(2.2 million bales) for MY 2010 and 770,000 MT (3.5 million bales)for the MY 2011.

Consumption

MY 2011 domestic cotton consumption became 1.23 MMT (5.7 million bales) and is projected to increase 1.3 MMT (5.9 million bales) during MY 2012 due to an increase in domestic consumption and exports.

Changes in Chinese textile export policies with an increasing focus on domestic market, coupled with increasing Indian yarn and textile products sales to China, opened up opportunities for Turkish textile exports resulting in a higher market share in other markets.

Higher domestic cotton prices and production costs in China have also helped Turkish textile exporters to compete with Chinese products in international markets successfully.

Turkish mills are consistently investing in new machinery and renewing their plants to have a lower cost and larger production. Turkish mills are benefiting from high technology and geographical proximity to the EU, the Middle East and North African markets.

Trade

Imports for MY 2011 became 518,610 MT (2.38 Million bales) representing about a thirty percent drop compared to the previous year due to increased local supply. The U.S. provided about half of the imports 252,663 MT (1.15 million Bales). Sudden changes in world cotton prices during the last two seasons caused millers to prefer small orders from the domestic market or near-by sources such as Greece.

Imports during the first two months of MY 2012 were 86,906MT. The U.S. was the leading supplier with 50,621MT followed by Turkmenistan (11,744 MT), Brazil (9,023 MT) and Greece (5,522 MT).

During MY 2012 imports are expected to increase to 750,000 MT due to a larger domestic use and lower domestic production. Additionally, heavy rains during the picking season adversely affected the quality of some of the local cotton that will increase the need for high quality imported cotton.

GSM-102 credit guarantee program continues to play a critical role in U.S. cotton sales to Turkey. During FY 2012 Turkish cotton importers registered US$ 160 million worth of U.S. cotton under the program, which represents about twenty-three percent of Turkey’s total usage for the financial year.

During MY 2011 Turkish total cotton exports (including hydrofoil cotton for medical use) reached 65,237 MT, of which 35,654 MT were lint cotton for textile use and the rest 29,584 MT were hydrofoil cotton for medical use. About half of the exported lint cotton was to the Mersin Free Trade zone that can be imported back in to the country later. China (6,000 MT) and Indonesia (2,700 MT) were the other leading export destinations.

PSD, Cotton MT

December 2012

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