2003 LoanPremium and Discount Table Released; Should Provide Boost For 2003

LUBBOCK, April 18, 2003                By Shawn Wade

      FollowingUSDA’s April 17 release of the 2003 Upland Cotton Loan Premium and Discounttables, High Plains’ cotton growers should find a lot to be happy about as theyprepare for the 2003 growing season.

      The2003 P&D table provides a second year of positive changes in the form oflower discounts and higher premiums.

      Anotherboon for producers is the fact that the trend toward smaller discounts carriesover to the Micronaire discount table, which has lower discounts throughout.

      Thediscount table for Uniformity remained the same as 2002 while the table forBark has lower discounts than were in place for 2002. Strength discounts,however, did increase slightly for readings 25.4 g/tex and lower. Premiums forStrength readings above 25.4 g/tex remained unchanged.

      ThePremium and Discount tables provide the applicable premium and discount figuresused to determine marketing loan values for cotton produced in the UnitedStates and supplied as collateral to the Commodity Credit Corporation.

      USDAindicated that the 2003 table was developed using an evenly weighted mix of the2002 crop Premium and Discount table and reported 2002 crop spot marketquotations.

      Producerswanting to see the 2003 Loan Premiums and Discounts first-hand can downloadthem from the USDA Farm Service Agency website by going to the Plains CottonGrowers website at http://www.plainscotton.org and following the links providedthere.

      Thetable below provides comparisons between 2002 and 2003 loan values for WhiteGrades 11-41 and Light Spot grades 12-42.


 

 

LOAN VALUES FOR GRADE, STAPLE LENGTH, AND LEAF CONTENT

OF 2003-CROP AMERICAN UPLAND COTTON

 

Base Loan Rate = 52.00

 

Staple

31

32

33

34

Color

Leaf

2001

2002

Change

2001

2002

Change

2001

2002

Change

2001

2002

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

11&21

1 & 2

-380

-275

105

-370

-275

95

-145

-95

50

165

215

50

 

3

-405

-285

120

-385

-285

100

-150

-100

50

160

205

45

 

4

-450

-320

130

-420

-320

100

-200

-155

45

70

100

30

 

5

-520

-420

100

-505

-420

85

-320

-270

50

-160

-150

10

 

6

-610

-515

95

-610

-515

95

-455

-365

90

-360

-330

30

 

7

-775

-675

100

-775

-675

100

-625

-525

100

-570

-505

65

31

1 & 2

-420

-290

130

-385

-290

95

-160

-115

45

145

180

35

 

3

-425

-300

125

-400

-300

100

-165

-120

45

145

180

35

 

4

-475

-340

135

-440

-340

100

-220

-170

50

65

90

25

 

5

-550

-435

115

-525

-435

90

-330

-285

45

-190

-185

5

 

6

-630

-535

95

-630

-535

95

-480

-385

95

-390

-360

30

 

7

-795

-690

105

-795

-690

105

-645

-540

105

-590

-520

70

41

1 & 2

-480

-350

130

-450

-350

100

-240

-185

55

45

70

25

 

3

-480

-360

120

-455

-360

95

-250

-195

55

35

60

25

 

4

-530

-395

135

-485

-385

100

-275

-220

55

Base

Base

Base

 

5

-605

-495

110

-590

-495

95

-420

-345

75

-280

-255

25

 

6

-710

-605

105

-710

-605

105

-560

-455

105

-480

-440

40

 

7

-870

-755

115

-870

-755

115

-720

-605

115

-700

-585

115

12&22

1 & 2

-440

-350

90

-440

-350

90

-235

-180

55

45

75

30

 

3

-465

-365

100

-455

-365

90

-245

-185

60

20

55

35

 

4

-520

-415

105

-510

-415

95

-315

-255

60

-85

-35

50

 

5

-595

-500

95

-590

-500

90

-420

-350

70

-275

-240

35

 

6

-700

-605

95

-700

-605

95

-550

-455

95

-490

-430

60

 

7

-870

-760

110

-870

-760

110

-720

-610

110

-695

-610

85

32

1 & 2

-505

-395

110

-480

-395

85

-285

-225

60

-20

5

25

 

3

-505

-395

110

-485

-395

90

-290

-230

60

-30

-5

25

 

4

-575

-455

120

-550

-455

95

-365

-295

70

-140

-100

40

 

5

-635

-540

95

-630

-540

90

-465

-390

75

-365

-340

25

 

6

-750

-650

100

-750

-650

100

-600

-500

100

-555

-500

55

 

7

-910

-800

110

-910

-800

110

-760

-650

110

-745

-650

95

42

1 & 2

-580

-480

100

-565

-480

85

-400

-330

70

-225

-195

30

 

3

-580

-485

95

-570

-485

85

-405

-330

75

-235

-200

35

 

4

-635

-525

110

-615

-525

90

-450

-375

75

-290

-260

30

 

5

-705

-615

90

-705

-615

90

-535

-465

70

-445

-415

30

 

6

-820

-760

60

-820

-730

90

-670

-580

90

-635

-580

55

 

7

-995

-890

105

-995

-890

105

-845

-740

105

-810

-740

70