2010 Upland Cotton Loan Chart Now Available

Friday, April 23, 2010                                                              By Shawn Wade

            The release of 2010-crop Upland Cotton Loan Premium and Discount tables by the United States Department of Agriculture Farm Service Agency this week was greeted with little fanfare.

            The low-key rollout of the 2010 Loan tables is most likely a result of the rather narrow range within which changes were confined in the premium and discount schedule.

            The general trend for the adjustments, though, was toward slightly lower premiums for higher value quality combinations (staple lengths 35 and better with leaf grade 4 or better). Slightly higher premiums, or lower discounts, were mostly limited to lower value quality combinations.

            Even though the changes were largely negative for longer staple, lower leaf combinations the changes were relatively minor overall. In fact, at the upper end of the loan chart only a very limited number were changed in excess of 15 points and most of the adjustments equaled 10 points.

            Like the changes applied to the Color/Leaf/Staple combinations the rest of the 2010 schedule, changes in the premiums and discounts for Bark and Extraneous matter, Micronaire, Strength, and Length Uniformity were small as well. The biggest change in this section of the loan table, not surprisingly, was applied to the Level One discount for Texas-NM-Oklahoma-KS bark, which increased 20 points.

            The table below provides comparisons between 2009 and 2010 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 33 through 37.

            Complete 2010 Loan Premium and Discount tables and loan charts with calculated values based on the 2010 schedule of premiums and discounts will be posted on the Plains Cotton Growers website at: www.plainscotton.org

 

COMPARISON OF LOAN PREMIUMS AND DISCOUNTS FOR SELECTED

GRADE, STAPLE LENGTH, AND LEAF CONTENT COMBINATIONS

OF 2010-CROP AMERICAN UPLAND COTTON

Base Loan Rate: U.S.= 52.00 /pound

 

Staple

33

34

35

36

37+

Color

Leaf

2009

2010

Change

2009

2010

Change

2009

2010

Change

2009

2010

Change

2009

2010

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

SM &

Leaf 1-2

-5

15

20

200

210

10

400

400

0

485

475

-10

495

485

-10

better

3

-10

10

20

170

185

15

355

345

-10

425

410

-15

435

425

-10

11 & 21

4

-90

-80

10

105

110

5

245

230

-15

320

300

-20

330

310

-20

 

5

-215

-195

20

-50

-50

0

125

135

10

180

190

10

195

205

10

 

6

-390

-375

15

-315

-305

10

-240

-230

10

-220

-215

5

-210

-205

5

 

7

-535

-525

10

-450

-445

5

-390

-385

5

-370

-370

0

-360

-360

0

MID

Leaf 1-2

-15

10

25

160

170

10

345

330

-15

420

410

-10

430

420

-10

31

3

-25

-5

20

140

150

10

330

310

-20

380

370

-10

390

380

-10

 

4

-125

-115

10

65

75

10

200

190

-10

265

260

-5

275

270

-5

 

5

-235

-210

25

-100

-95

5

90

105

15

135

150

15

145

160

15

 

6

-400

-385

15

-330

-320

10

-270

-265

5

-250

-245

5

-240

-235

5

 

7

-540

-530

10

-460

-450

10

-420

-415

5

-395

-390

5

-385

-380

5

SLM

Leaf 1-3

-135

-135

0

45

45

0

135

135

0

180

170

-10

180

175

-5

41

4

-200

-200

0

Base

Base

Base

90

85

-5

140

125

-15

140

130

-10

 

5

-290

-290

0

-210

-195

15

-110

-115

-5

-70

-60

10

-65

-60

5

 

6

-470

-470

0

-415

-395

20

-370

-355

15

-355

-335

20

-355

-335

20

 

7

-635

-630

5

-575

-565

10

-550

-535

15

-540

-525

15

-535

-520

15

SM &

Leaf 1-2

-55

-45

10

80

75

-5

200

190

-10

270

265

-5

285

275

-10

better

3

-70

-60

10

60

60

0

180

165

-15

240

230

-10

255

240

-15

12 & 22

4

-160

-155

5

-20

-10

10

105

105

0

175

180

5

190

190

0

 

5

-350

-350

0

-205

-205

0

-135

-130

5

-100

-100

0

-90

-90

0

 

6

-485

-480

5

-400

-405

-5

-365

-375

-10

-360

-365

-5

-350

-355

-5

 

7

-620

-620

0

-560

-560

0

-530

-535

-5

-520

-525

-5

-510

-515

-5

MID

Leaf 1-2

-135

-125

10

-30

-20

10

50

40

-10

105

100

-5

105

100

-5

32

3

-150

-140

10

-50

-45

5

25

15

-10

95

90

-5

95

90

-5

 

4

-225

-220

5

-150

-145

5

-45

-50

-5

15

10

-5

15

15

0

 

5

-405

-400

5

-300

-305

-5

-250

-255

-5

-220

-225

-5

-220

-225

-5

 

6

-550

-545

5

-485

-480

5

-450

-445

5

-435

-430

5

-435

-430

5

 

7

-675

-670

5

-635

-630

5

-610

-605

5

-600

-595

5

-600

-595

5

SLM

Leaf 1-3

-265

-265

0

-185

-170

15

-100

-95

5

-45

-30

15

-45

-30

15

42

4

-285

-285

0

-220

-210

10

-150

-140

10

-100

-85

15

-100

-85

15

 

5

-435

-430

5

-380

-370

10

-315

-305

10

-300

-290

10

-300

-290

10

 

6

-625

-595

30

-530

-520

10

-490

-485

5

-475

-470

5

-475

-470

5

 

7

-750

-745

5

-695

-690

5

-665

-655

10

-660

-650

10

-660

-650

10

 

http://www.thehandthatfeedsus.org/

 

PCG Board Elects 09-10 Officers/Exec. Comm.

Friday, April 23, 2010                                                              By Shawn Wade

            Littlefield, Texas cotton producer Brad Heffington has been elected President of Plains Cotton Growers, Inc. for the 2009-2010 growing season. Heffington's election occurred during the organization's quarterly Board of Directors meeting held April 9 in Lubbock.

            Slaton, Texas cotton producer Craig Heinrich was elected to serve as the organization's Vice President and Lamesa-area cotton producer Shawn Holladay was elected Secretary-Treasurer of the 41-county cotton producer organization.

            Holladay, who has served on the PCG Executive Committee for several years, joins Heffington and Heinrich in the PCG Officer rotation. Each of these gentlemen is eligible to serve two consecutive one-year terms in their current positions.

            In other business conducted April 9 the PCG Board selected members to serve on the organization's 2009-2010 Executive Committee. Each year the PCG Board elects a total of nine directors, three from each of the organization's three sub-regions, to serve alongside the organization's three elected officers and two most recent past presidents.

            Members of the 2009-2010 PCG Executive Committee are: District 1 representatives - Johnie Reed of Kress, James Brown of Muleshoe and Dan B. Smith of Lockney; District 2 representatives - Stacy Smith of Wilson, Scott Harmon of Idalou, and David Carter of Levelland; District 3 representatives - Wesley Butchee of Seagraves, Al Spinks of Midland and Eddy Herm of Ackerly; President Brad Heffington of Littlefield, Vice President Craig Heinrich of Slaton, Secretary-Treasurer Shawn Holladay of Lamesa, Board Chairman Barry Evans of Kress, and past president Mike Hughes of Lamesa.

           

More Acres Mean More Opportunity For
Dairy Producers to Get Cattle Back on Cottonseed

Friday, April 23, 2010                                                              By Brad Robb

         "The forecast of 1.3 million additional acres of Upland cotton for 2010 could begin to release the vise-grip pressure on the cottonseed supply available to dairy producers, if the weather in Texas cooperates," says Tom Wedegaertner, Director of Cottonseed Research and Marketing, Cotton Incorporated.

         "Based on the latest cotton planting intention reports, 2010 may spell relief for dairy producers who want to get their cows back on cottonseed," adds Wedegaertner. "We're looking at a 50 percent increase in the amount of cottonseed available for dairy cattle consumption this year, if abandonment levels remain at average levels."

         The USDA's March 31 planting intentions report projects Upland cotton acreage could reach 10.3 million acres in 2010, a 15 percent increase over 2009. USDA's acreage report will be release on June 30.

         "These cottonseed projections assume an average abandonment rate of 11.5 percent, compared to 2009's unusually high 20 percent," notes Wedegaertner. "We're also expecting more seed to be produced on each acre. These factors could contribute to as much as a million tons of additional cottonseed in 2010."

         Wedegaertner admits the state to watch is Texas, where producers will add 600,000 acres to last year's five million acres. "With half the cotton crop being produced in Texas, even a slight increase or decrease in their production will dramatically affect cottonseed availability. The good news is we will have more cottonseed, but we do need to be wary of the weather, particularly drought or hail. Crop conditions in Texas will be the most important factor determining the overall outcome of this projection."

         As of April 2, new crop cottonseed prices were about $50 per ton lower than current old crop prices, he adds.

         Wedegaertner also gives some early advice to dairy producers, saying "If you can buy some new crop cottonseed, I'd strongly suggest locking in a portion of what you need for next year. Watch the weather and then consider locking in some more. Right now it's looking really good for 2010, but the conditions could get worse before they get better."

         Cottonseed is an excellent source of fiber, protein and energy. Typical rations can include up to 15 percent cottonseed on a dry matter basis. For more information, including reports on market conditions, feeding information and a list of suppliers, visit http://www.cottoninc.com.

 

The Cotton USA Advantage

CCI-FAX – April 5, 2010

         Cotton Day Japan promotions kick off with T-shirt design contest. The annual Cotton Day T-shirt contest allows aspiring designers to utilize cotton as their medium for expression. Residents from Japan and six other overseas countries submitted 2,428 designs. The judging ceremony for the Cotton Day T-shirt contest featured a panel of judges including representatives from major consumer and trade newspapers, the president of Japan Spinners' Association (JSA) and fashion specialists from CCI and Cotton Incorporated. JSA will award cash prizes to the winners, which will be announced at the Cotton Day consumer event in Tokyo on May 10.

COTTON USA licenses Teri Towel Manufacturing in Malaysia. Teri Towel is a high quality towel manufacturer using 100 percent U.S. cotton yarns from a company in Vietnam. Teri Towel supplied Electrolux with 40,000 high quality 100 percent U.S. cotton towels as premiums. In addition, COTTON USA licensed 6,000 "Horgen" towels, a towel retail brand found in leading department stores (Metrojaya, Parkson Grand, Sogo, Robinsons and Isetan) in Malaysia. Horgen is manufactured by Teri Towel Manufacturing.