Cotton and Products Update

An Expert's View about Textiles, Apparel and Accessories in Turkey

Posted on: 12 Oct 2011

The MY 2011 Turkish cotton crop is reported to be developing well in all of the cotton growing regions. High temperatures and the availability of irrigation water are supporting higher yields. Accordingly, the Turkish cotton crop for the marketing year is expected to reach 650,000 MT.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: August 28, 2011 Turkey Cotton and Products Update Turkey Cotton and Products Update Approved By: Rachel Nelson Prepared By: Ibrahim Sirtioglu, Agricultural Marketing Specialist Report Highlights: The MY 2011 Turkish cotton crop is reported to be developing well in all of the cotton growing regions. High temperatures and the availability of irrigation water are supporting higher yields. Accordingly, the Turkish cotton crop for the marketing year is expected to reach 650,000 MT. Total imports are expected to remain at about 730,000 MT (3.35 Million bales). Cotton imports during the first eleven months of MY 2010 were 699,000 MT (3.2 million bales), of which 64% was from the United States. Post: Commodities: Ankara Cotton Production The Turkish cotton crop is developing well under the optimum conditions, including high temperatures and broad availability of irrigation water. Additionally, unlike the previous year, no major bug damage has been reported in cotton growing regions this year. Accordingly, MY 2011 production is now estimated to increase to 650,000 MT. Consumption MY 2010 Turkish cotton consumption is expected to remain at about 1.22 MMT (5.6 million bales). The recent economic turmoil, high world cotton prices and a lack of orders forced some domestic mills to temporary closure or to increase the use of manmade fibers. The sudden increase in cotton prices and then sharp decline in prices a few months later caused some mills to get stuck with relatively high-cost raw materials at a time when export demand was falling. The Turkish government is looking for ways to support the Turkish textile industry in response to this recent turmoil in the sector. Accordingly, in January the GOT announced it would increase import duties 20 to 30 percent for textiles and garment imports effective July 21, 2011. Additionally, GOT also extended import taxes on cotton yarn of about 12 percent for 200 additional days. The recent devaluation of the Turkish Lira against the major currencies will also help the industry to maintain its export markets. Despite these setbacks, the Turkish textile and garment industry managed to increase exports in both categories thirty-three and sixteen percent, respectively, during the first five months of CY 2011 compared to the same period the year before. Sources indicate that these increases are due to deliveries of old orders and speculate that export growth will soon stop. Trade During the first eleven months of MY 2010 Turkey imported 699,003 MT (3.2 million bales) of cotton of which 447,979 MT (2 million bales) was U.S. cotton. Total MY 2010 imports are expected to remain at about 730,000 MT but imports are expected to decline to about 550,000 MT (2.5 million bales) due to a significant increase in domestic production and an expected decline in domestic consumption. While Greece, the CIS countries and India were the traditional suppliers, Brazil and Argentina are emerging as new cotton suppliers for Turkey. Turkish cotton exports during the same period were about 7,260 MT (33,323 bales), of which about 3,841 MT (17,630 bales) was to Turkish free trade zones, which means that some of this cotton may be imported back into the country. Turkey also exported about 20,000 MT of cotton for medical use. Cotton Turkey 2009/2010 2010/2011 2011/2012 (bales) Market Year Begin: Aug Market Year Begin: Aug Market Year Begin: Aug 2009 2010 2011 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 280 0 320 0 450 Area Harvested 280 280 320 320 450 450 Beginning Stocks 1,654 1,136 1,928 1,166 1,558 990 Production 1,750 1,745 2,100 2,110 2,900 2,984 Imports 4,394 4,391 3,500 3,350 3,400 2,525 MY Imports from U.S. 0 2,236 0 2,200 0 1,745 Total Supply 7,798 7,272 7,528 6,626 7,858 6,499 Exports 150 46 150 36 150 46 Use 5,800 6,060 5,900 5,600 6,000 5,415 Loss -80 0 -80 0 -80 0 Total Dom. Cons. 5,720 6,060 5,820 5,600 5,920 5,415 Ending Stocks 1,928 1,166 1,558 990 1,788 1,038 Total Distribution 7,798 7,272 7,528 6,626 7,858 6,499 Stock to Use % 32 0 26 18 29 19 Yield 1,361. 1,357. 1,429. 1,436. 1,403. 1,444. PSD Table Turkey Cotton (HECTARES)(MT) 2009 Revised 2010 Estimate 2011 Forecast USDA USDA USDA Official Post Official Post Official Post [Old] Estimate[New] [Old] Estimate[New] [Old] Estimate[New] Market Year Begin Aug-09 Aug-10 11-Aug Area Planted 280000 280000 320000 320000 450000 450000 Area Harvested 280000 280000 320000 320000 450000 450000 Beginning Stocks 247433 247433 254068 254068 206068 216068 Production 380000 380000 460000 460000 630000 650000 Imports 956682 956682 700000 730000 650000 550000 MY Imp. from U.S. 487236 487236 500000 480000 425000 380000 TOTAL SUPPLY 1584115 1584115 1414068 1444068 1486068 1416068 Exports 10047 10047 8000 8000 10000 10000 USE Dom. Consumption 1320000 1320000 1200000 1220000 1250000 1180000 Loss Dom. Consumption 0 0 0 0 0 0 TOTAL Dom. Consumption 1320000 1320000 1200000 1220000 1250000 1180000 Ending Stocks 254068 254068 206068 216068 226068 226068 TOTAL DISTRIBUTION 1584115 1584115 1414068 1444068 1486068 1416068 Import Trade Matrix Turkey Commodity Cotton Units: Metric tons Time Period Aug/July Aug/June Imports for: MY 2009 MY 2010 U.S. 487236 U.S. 447,979 Others Greece 150805 Greece 87321 Turkmenistan 72266 Turkmenistan 50984 India 61649 India 11135 Uzbekistan 33291 Uzbekistan 16353 Syria 58756 Syria 1988 Brazil 10009 Brazil 27852 Pakistan 9198 Egypt 5101 Azerbaijan 10239 Argentina 6188 Burkina Faso 5563 Burkina Faso 3609 Tajikistan 21006 Tajikistan 21087 Total of Others 432782 231618 Others not listed 36664 19406 Grand Total 956682 699003 Country Turkey Commodity Cotton Units: Bales Time Period Aug/July Aug/June Imports for: MY 2009 MY 2010 U.S. 2236413 U.S. 2056223 Others Greece 692195 Greece 400803 Turkmenistan 331700 Turkmenistan 234016 India 282968 India 51110 Uzbekistan 152805 Uzbekistan 75060 Syria 269690 Syria 9125 Brazil 45941 Brazil 127840 Pakistan 42218 Egypt 23414 Azerbaijan 46997 Argentina 28403 Burkina Faso 25534 Burkina Faso 16565 Tajikistan 96417 Tajikistan 96789 Total of Others 1986465 1063125 Others not listed 168282 89073 Grand Total 4391170 3208421
Posted: 12 October 2011

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