YOU CAN HELP COTTON INCORPORATED BY
TAKING THE "NATURAL RESOURCE SURVEY"

Friday, August 1, 2008                                 By Roger Haldenby

COTTON PRODUCERS! Please Help Out Cotton Incorporated
By Taking The "Natural Resource Survey"

         Go to: http://www.cottoninc.com/Ag-eSurvey/ , read the letter, and then click on the "NEXT" button at the bottom of the page to take the survey.

         Your participation will help identify the great strides cotton farmers have made in production efficiency and environmental stewardship.

         With your help, Cotton Incorporated will use the summarized survey data to promote U.S. cotton, direct future research and rebut the claims of cotton's environmental critics. They want to show to the global textile industry, brands, retailers and even consumers the true extent of cotton's limited impact on the environment.

         The input you provide will be anonymous so you can be comfortable in truthfully answering the questions, but on completion of the survey you have the opportunity to receive a 100% cotton T-Shirt as thanks for your help. The name and address you give for sending the 100% cotton T-Shirt WILL NOT be associated with your survey information.

         It's essential that you, as a cotton producer, take part in this 20-minute anonymous online Natural Resource Survey http://www.cottoninc.com/Ag-eSurvey/. Only you, as a cotton producer, can provide the information that needs to be gathered.

         So please, go to: http://www.cottoninc.com/Ag-eSurvey/ , read the letter, and then click on the "NEXT" button to take the survey.

         And, don't forget the free 100% cotton T-Shirt!

 

AVERAGE PRICE RECEIVED THROUGH JUNE 2008

Friday, August 1, 2008                                          By Shawn Wade

         A slight uptick in marketings during the month of June pushed the Weighted Average Price Received by farmers for Upland cotton up to 57.05 cents based on preliminary marketing and price information released by the USDA National Agricultural Statistics Service.

         The Weighted Average Price Received calculation will ultimately be used to calculate the final 2007-crop Counter-cyclical Payment Rate for Upland cotton.

         The 57.05-cent price calculated through June 2008 drops the estimated 2007 Upland cotton Counter-cyclical Program payment rate to 8.68 cents per pound with just one month of price and marketing figures left to be entered in to the calculation.

         Based on an 8.68-cent estimated payment rate, growers who received the 2007 Upland cotton Advance Counter-cyclical payment of 3.09 cents in February 2008 would receive an additional 5.59 cents when their final Counter-cyclical payment is made in September 2008.

         The 57.05-cent Weighted Average Price calculated through June reflects a 12.15-cent increase in the weighted average price received by growers since the beginning of the 2007 marketing year.

         Cumulative Upland cotton marketings through June 2008 total 11.531 million bales according to the USDA National Agricultural Statistics Service.

         Since the March cotton market debacle, monthly Upland cotton marketings have hovered near the 500,000-bale level. Since that time the average price received reported by NASS has mostly been near the 60.5-cent level.

         Prior to the June report, April's 62.1-cent price was the only uptick seen in either of those numbers. The higher June 2008 marketing total of 717,000 bales represents a 50 percent increase over the 500,000 bales average seen over the previous three months.

         Even though prices have remained steady since March, year-to-date marketings continue to slip and are now 2.96 million bales behind the 2006 crop's sales pace. Magnifying that number slightly is the fact that prior to March total marketings had actually been some 200,000 bales ahead of the 2006-crop marketings reported for the same period.

         The following table shows the average price received each month by farmers and the associated weighted average price based on prices and cumulative marketings from August 1, 2007 through the end of June 2008.

         The 2007 Counter-cyclical payment rate authorized under the 2002 Farm Bill will be based on the 12-month Weighted Average Price Received by growers. For cotton the 12-month Weighted Average Price will reflect price and marketings for the 2007 marketing year. The 2007 cotton marketing year began August 1, 2007 and ends July 31, 2008.

Upland Cotton Average Price Received by
Growers Through June 2008

(Weighted by Marketings)

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August

1,762

1,762

44.90

44.90

September

373

2,135

52.00

46.14

October

949

3,084

55.20

48.93

November

1,464

4,548

57.00

51.53

December

1,529

6,077

59.20

53.46

January

1,839

7,916

60.70

55.14

February

1.339

9,315

61.90

56.16

March

488

9,803

60.50

56.37

April

486

10,289

62.10

56.64

May

525

10,814

60.50

56.83

June

717

11,531

60.40

57.05

July

n/a

n/a

60.30*

n/a

Source: National Agricultural Statistics Service; * = preliminary

Visit PCG on the Web: WWW.PLAINSCOTTON.ORG