PCG Officers, Staff Participate In Series
of Industry Meetings / Caucuses

Friday, August 4, 2006                         By Shawn Wade

      Representatives from theAmerican Cotton Producers (ACP) and Texas Cotton Producers (TCP) organizationsgathered in San Antonio August 1-3 for a series of meetings to discuss currentcotton industry issues.

      Plains Cotton Growers waswell represented at the meetings by a contingent that included current PCGPresident Mike Hughes of Lamesa, PCG Secretary-Treasurer Brad Heffington ofLittlefield, PCG Chairman Rickey Bearden of Plains and PCG Executive VicePresident Steve Verett.

      With so many producersgathered in one place a natural topic of discussion was the status of the 2006crop and the effect that hot, dry conditions across the Cotton Belt, andespecially in Texas, have had on yield expectations in 2006.

      During the various meetingsthe PCG contingent discussed issues and heard reports from National CottonCouncil staff, Senate Ag Committee staff and representatives from the USDA AgriculturalMarketing Service Cotton Program and the USDA Risk Management Agency.

      An interesting portion of theACP's meeting agenda, according to PCG Executive Vice President Steve Verett,was a presentation on the Wal-Mart Sustainability Project by Wal-Martrepresentative Kim Brandner, Brand Manager of Sustainability, from the company'sBentonville, Arkansas headquarters.

      Additional agenda itemsincluded the WTO and prospects for restarting the stalled Doha negotiations,Federal Crop Insurance issues, cotton flow issues, Farm Bill issues (includingthe recently announced Senate Farm Bill hearing in Lubbock) and the currentcotton economic situation.

      In addition to the ACP andTCP meetings, PCG representatives also participated in a series of caucuses toselect producer representatives and alternates to serve on the CottonIncorporated and National Cotton Council Boards and to submit nominations tothe Secretary of Agriculture for producer representatives to serve on theCotton Board beginning in 2006.

 

Texas Farm Service Agency Figures Show
High Plains Abandonment At 970,000 Acres

Friday, August 4, 2006                         By Shawn Wade

      Acreage certification figuresobtained from the Texas Farm Service Agency August 1 indicate the High Plainsregion has abandoned just over 25 percent of the reported 3.8 million cottonacres planted in Plains Cotton Growers 41-county service area.

      Totaling just over 970,000acres, the majority of the region's abandonment has been caused by droughtconditions that prevented hundreds of thousands of non-irrigated cotton acresfrom establishing a stand. The rest of the acres failed so far were destroyedby a variety of other causes including hail, high winds and blowing sand.

      Statewide, producerscertified a total of 6.34 million acres planted to cotton with county FSAoffices. Of that total 1.54 million acres have been failed statewide. The 3.8million acres planted on the High Plains amounts to approximately 60 percent ofthe State's cotton acres. The 970,000 acres abandoned on the High Plainscomputes to 63 percent of the States failed cotton acreage through August 1.

      High Plains irrigated cottoncontinues to look pretty good in the field, although some producers are havinga difficult time keeping up with the moisture demands of the rapidly maturingcrop.

      Yield prospects for theregion's remaining non-irrigated acreage should come into focus fairly soon asa majority of the remaining dryland crop is already "blooming out the top." Inthe coming days dryland cotton will establish or "set" its ultimate boll loadbased on the availability of soil moisture.

      Based on the region's dismaldryland prospects and rapidly maturing crop, PCG has initiated discussions withofficials at the USDA Risk Management Agency regarding the use of boll countappraisal methods on non-irrigated cotton in the area.

      As aresult of those discussions, PCG officials have drafted a letter requesting theearly initiation of the Agency's boll count appraisal rules for non-irrigatedUpland cotton on the Texas High Plains to USDA Risk Management AgencyAdministrator Eldon Gould.

 

ICAC Forecast Predicts Tighter World Cotton
Stocks and Higher Prices In 2006/2007

Friday, August 4, 2006                         By Shawn Wade

      World cotton ending stocksare now forecast at 45 million bales in 2006/07, down 5 million bales from2005/06 according to the International Cotton Advisory Committee's latestcotton supply and demand estimates.

      ICAC's latest 2006/07projections also suggest cotton prices will increase by as much as 14 percent toaround 64 cents per pound, based on ICAC projections of the 2006/07 seasonaverage Cotlook A Index price. ICAC figures show the season average 2005/06Cotlook A Index price at 56 cents per pound.

      World cotton production isforecast at 113 million bales in 2006/07, slightly lower than in 2005/06. Worldcotton mill use is expected to grow by 3% to a record 119 million bales in2006/07. The ICAC data shows that the mainland Chinese textile industry willcontinue to drive world mill use, with Chinese consumption expected to reach arecord 48.1 million bales in 2006/07, up 2.75 million bales from 2005/06.

      Chinese imports are expectedto remain at a record 19.25 million bales in 2006/07, sustaining world cottontrade at 44 million bales. In 2006/07, India is expected to become the thirdlargest cotton exporting country behind the United States and Uzbekistan.Indian cotton exports are forecast at over 3.6 million bales in 2006/07.

 

WORLD COTTON SUPPLY ANDDISTRIBUTION

Source: International Cotton AdvisoryCommittee

 

2004/05

2005/06

2006/07

Million Bales

Production

120.8

114

113

Consumption

107.3

115

119

Exports

35.7

43

44

Ending Stocks

50.9

50

45

 

PRICE *

 

2004/05

 

2005/06

 

2006/07

Cotlook A Index

52.2

56.0

64.0

       US cents per pound. The priceestimate for 2006/07 is based on the
year-to-year price differential projected by the ICAC Price Model.

Average Price Received Through June 2006

      The Weighted Average Pricereceived by farmers for 2005-crop Upland cotton, calculated through June 2006,remained virtually unchanged from the previous month at 47.76 cents.

      Adding in an estimated635,000 bales marketed in June 2006, USDA figures indicate that producers havemarketed 14.337 million bales during the 2005 Upland Cotton marketing year thatbegan August 1, 2005.

      With only the July numbersleft to be included, it is fairly safe to say that the outcome of the 2005Counter-cyclical (CC) payment rate calculation is certain and that the USDAFarm Service Agency will be able to make a timely announcement of the finalpayment rate in September.

      The 47.76-cent WeightedAverage Price is more than four cents below the level that would trigger a2005-crop Upland Cotton CC payment rate below the 13.73-cent maximum.

      Thefollowing table shows the average price received each month by farmers and thecalculated weighted average price based on estimated cumulative marketings andprices reported by the National Ag Statistics Service through June 2006.

Monthly Average Price Receivedfor

2005-crop Upland Cotton ThroughJune 2006

(Weighted by Marketings)

 

Marketings

Prices

 

 

(000's of Running bales)

(cents/Lb.)

 

 

Monthly

Cum.

Monthly

Weighted

 

August

1,233

1,233

42.10

42.10

September

518

1,751

44.30

42.75

October

911

2,662

48.50

44.72

November

1,831

4,493

48.50

46.26

December

3,264

7,757

47.90

46.95

January

2,420

10,177

48.60

47.34

February

1,182

11,359

49.00

47.51

March

1,169

12,528

50.40

47.78

April

516

13,044

48.60

47.82

May

658

13,702

46.80

47.77

June

635

14,337

47.70

47.76

July

na

na

46.20*

na

Source: National AgriculturalStatistics Service; * = preliminary

 

North Plains Field Day Set For August 9

      The North Plains ResearchField southeast of Etter will host a Research Field Day August 9. The programwill begin at 8:00 a.m. and run through 11:45 a.m.

      The day's speaker line-upincludes State Rep. David Swinford who will provide a legislative update andTexas Cooperative Extension (TCE) economist Dr. Steve Amosson who will discussthe outlook for energy prices and implications for irrigation in the region.Scheduled activities will conclude with a luncheon.

      One of the highlights of theprogram will be a presentation of cotton production statistics compiled by theMoore County Gin that illustrate the rapid increase in cotton acres by producersseeking an alternative to corn.

      Producerscan earn three continuing education units, one in integrated pest managementand two general, by participating in the event. Certified Crop Advisor creditswill also be offered. For more information contact a local County Extensionagent.

 

NRCS To Hold 2007 EQIP PDG/LWG Meetings

      Texas Soil and WaterConservation Districts invite the public, and any agencies with interest, toparticipate in the agency's 2007 Program Development Group (PDG) meetings.

      PDG meetings are led by thelocal Soil and Water Conservation District (SWCD) in partnership withUSDA-Natural Resources Conservation Service (NRCS) Each county in Texas holdsthe public meetings annually and meeting information will soon be posted on theTexas NRCS website (www.tx.nrcs.usda.gov). A partial list of PDG meetings already scheduledis listed below.

      Thepurpose of the PDG is to provide members of the community a forum forsubmitting recommendations on local issues and county based funding that can beaddressed through the Environmental Quality Incentives Program (EQIP).

2007 EQIP PDG Meeting Dates, Times and Locations

County:

Date:

Time:

Location:

Dawson

8/7/06

8:30AM

NRCS Service Center, Lamesa, TX

Motley

8/8/06

8:30AM

SWCD Board Meeting Room, Matador, TX

Castro

8/9/06

8:00AM

NRCS Service Center, 315 West Belsher, Dimmitt, TX

Sherman

8/9/06

9:00AM

Happy, State Bank, 100 N. Main, Stratford, TX.

Oldham

8/15/06

9:00AM

Randall County Extension Bldg, 200 N. Brown, Canyon, TX

King

8/17/06

1:30PM

Guthrie Community Center, Guthrie, TX

Stonewall

8/17/06

9:00AM

Stonewall Co. Courthouse, Aspermont, TX

Moore

8/23/06

9:00AM

Amarillo College, Moore County Campus

Cochran

8/29/06

9:00AM

NRCS Service Center, 200 A West Taylor, Morton, TX

Terry

8/29/06

9:00AM

Extension Service Center, 209 South 5th Street, Brownfield, TX

Bailey

8/30/06

8:00AM

Five Area Telephone Board Rm., 302 Uvalde St., Muleshoe, TX

Fisher

8/31/06

2:00PM

Roby Community Center, Roby, TX

Garza

9/5/06

8:30AM

Wells Fargo Bank Meeting Rm, 216 W. Main Street, Post, TX

Lynn

9/7/06

8:30AM

Tahoka Housing Authority Meeting Rm, 1400 Ave. K, Tahoka

Hale

9/8/06

10:30AM

NRCS Service Center, 304 South Garland, Plainview, TX

Lamb

9/11/06

10:00AM

Lamb County Electric Co-op, 2415 S. Phelps, Ave., Littlefield, TX

Cottle

9/14/06

10:00AM

NRCS Service Center, 920 Bray, Paducah, TX