2009-crop Average Price Received Still
Inching Up As Marketings Near 8.6 Mil. Bales

Friday, June 11, 2010                                By Shawn Wade

      Cumulative Upland cotton marketings for the first seven months of the
2009 marketing year now total 8.588 million-bales according to information
released May 28, 2010 by the USDA National Agricultural Statistics
Service.

     USDA estimated April 2010 cotton marketings at 465,000 bales with an
average selling price of 66.20 cents per pound. The preliminary mid-month
price reported for May 2010 was 64.30 cents per pound.

      The 2009 Upland cotton Weighted Average Price calculated through April
2010 now stands at 61.75 cents per pound with three months remaining in the marketing
year.

      Currently the estimated 2009 Upland cotton Weighted Average Price is 9.75
cents above the 52-cent threshold where the Upland cotton Counter-cyclical
payment rates begin to drop below statutory maximum rate. Based on the current
numbers the estimated marketing year-end Counter-cyclical payment rate has now
fallen to 2.83 cents per pound.

      Producers who received the 1.03 cent 2009 advance Counter-cyclical program payment would therefore expect a final payment rate equal to 1.8 cents per pound if the Weighted Average Price
Received remains unchanged.

      Based on provisions of the 2008 Farm Bill, the Upland cotton
Counter-cyclical payment rate goes to zero when the Weighted Average Price
Received hits 64.58 cents per pound. Accordingly, any increase in the Weighted Average Price
Received above 63.55 cents means the USDA Farm Service Agency would have to seek repayment of some portion of the 2009 advance CC payment as well.

      With three months of data remaining to be reported it seems unlikely that the Weighted Average Price
Received will move above 63 cents. Unfortunately, recent history proves that USDA revisions to previously released figures published in the monthly Agricultural Prices report can have a significant impact on the final calculation.

      Since future revisions could substantially impact the final payment rate calculation the current 1.8 cent difference between the estimated Weighted Average Price
Received and the FSA-paid advance CC payment rate is narrow-enough that it could be erased with the right combination of revised data and unreported marketing and price information.

     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, 2009 through March 2010.

     The 2009 Counter-cyclical payment rate authorized under the 2008 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 2009 marketing year. The 2009 cotton marketing year
began August 1, 2009 and ends July 31, 2010.

Average Price Received For 2009-crop Upland Cotton*
(Weighted by Marketings)

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August 09

30

30

47.70

47.70

September 09

225

255

55.00

54.14

October 09

271

526

56.70

55.46

November 09

1,611

2,137

58.50

57.75

December 09

2,536

4,673

62.80

60.49

January 10

1,618

6,291

60.60

60.52

February 10

1,262

7,553

65.00

61.27

March 10

570

8,123

63.90

61.49

April 10

465

8,588

66.20

61.75

May 10

n/a

n/a

64.30*

n/a

Source: National Agricultural Statistics Service; * = preliminary

 

THE HAND THAT FEEDS U.S.

http://www.thehandthatfeedsus.org/

 

 

Senate Ag Committee Chairman Blanche Lincoln
Announces Farm Bill Hearings

Friday, June 11, 2010                               

      U.S. Senator Blanche Lincoln, Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, announced today that the Committee will begin hearings on the reauthorization of the Food, Conservation and Energy Act of 2008 ("Farm Bill") this month.

      The first hearing is scheduled for Wednesday, June 30, 2010 at 9:30 a.m. and will focus on maintaining a strong U.S. farm policy. The hearing will be held in the Senate Agriculture Committee, Room 328A of the Russell Senate Office Building.

      "The farm bill is one of the most important pieces of legislation Congress considers on behalf of rural America and our nation's farmers and ranchers," said Lincoln. "As we look toward the upcoming farm bill, I will use these hearings to gather feedback on how the current bill is working and lay the ground work for the future of our nation's farm, nutrition, conservation, rural development, research, forestry and energy priorities. This first hearing will focus on maintaining a sound U.S. farm policy to protect our most vital resource - our food supply.

      "Our food security, millions of jobs and a good share of our national economy depends on the work our farmers and ranchers do every day. The farm bill is necessary and vitally important to ensure we continue to have a safe, reliable and affordable supply of food, while protecting our natural resources."

      As Chairman, Lincoln is charged with leading the Committee through the multi-year process of writing and passing the nation's next farm bill. Lincoln plans to hold multiple hearings over the next few months, focused on various issues that will be addressed in the legislation, covering the scope of American agriculture.

      Below is an outline of topics to be explored as the Committee builds a public record that will serve as a basis for the reauthorization of the farm bill. Additional dates and locations will be announced in the following weeks.

Hearing 1: Maintaining Our Domestic Food Supply through a Strong U.S. Farm Policy; Date - Wednesday, June 30, 2010; Time - 9:30 a.m.; Location - Room 328A, Russell Senate Office Building

Hearing 2: Revitalizing the Rural Economy through Robust Rural Development

Hearing 3: Promoting Conservation Practices that Preserve Our Natural Resources and Wildlife Habitat for Future Generations

Hearing 4: Ensuring Agriculture is Part of Our Nation's Energy Future

      Lincoln, who hails from a seventh-generation Arkansas farm family, became the first woman and the first Arkansan to serve as Chairman of the Senate Agriculture Committee on September 9, 2009. She has served on the Committee since first being elected to the Senate in 1999.

 

 

THE COTTON USA ADVANTAGE

CCI-FAX – June 3, 2010

      CCI selects winner of the 2010 COTTON USA Design Challenge in Thailand. The winning team, from Chulalongkorn University, will join Praew magazine on a trip to a U.S. cotton field to shoot the winning dresses for the cover of Praew and a 20-page fashion spread.

      The COTTON USA Design Challenge has been promoted in Thailand for the past five years. The event creates awareness among young designers that 100 percent cotton fabrics can be used as a raw material for fashion apparel, as well as that high quality fabrics made from U.S. cotton can be sourced locally from reputable mills.

      Fifty-four students from 19 universities across the country participated. Each three-person team submitted sketches of 100 percent cotton ready-to-wear couture, using colors from the Cotton Incorporated Fall-Winter 2010/11 color trend forecast. Five judges, included a COTTON USA licensee designer from Blue Corner, two professional designers and Praew magazine's fashion editor, selected five teams as finalists to turn their sketches into real dresses using COTTON USA-qualified 100 percent cotton fabrics from Thai mills sponsoring the challenge.

 

 

      Each team had 20 minutes to defend their work to the judges, and then the winning team was selected. All dresses will be shown in the upcoming Cotton Day fashion show.

      CCI Turkey sponsors Turkish Ready-Made Garment Association's Annual Conference in Istanbul. The event attracted more than 700 executives from Turkish garment manufacturers and buying offices based in Turkey. In addition to formal presentations, including the first presentation on results from the 2010 Global Lifestyle Monitor by CCI Turkey, more than 500 business-to-business meetings were held between brands, buying offices and manufacturers. As a result of its presentation, CCI Turkey received 40 requests for a copy of its research report from nearly all leading brands participating in the conference as well as many garment manufacturers and designers. CCI was mentioned in nearly 20 national press articles covering the event.

      CCI Taiwan holds "Pure Love of Cotton" concert. Because of its popularity with Taiwanese consumers, CCI has annually held a music concert featuring a famous spokesperson and this year was no exception. The Drifters and Claire Kuo joined CCI on stage in Taipei. Darren and Yannick, the young talents that make up the Drifters, sang the COTTON USA theme song, which translates to "Pure Love of Pure Cotton." A music video prominently featuring the COTTON USA Mark has been launched along with comprehensive advertisement on television, buses, subways, radio, newspaper and the Internet. The television ad will show the 20-second commercial over 2,500 times. One hundred fourteen brands in over 5,000 stores in Taiwan will participate in the promotion with their U.S. cotton-rich apparel. The free public relations media alone is estimated at over $1 million.

      COTTON USA home textile collections attract media attention in Italy. Italian journalists are increasingly turning their attention to COTTON USA home textile collections thanks to three iconic licensed brands: Bassetti, Zucchi and Borgo Tessile. These collections, inspired by nature, are hits with Italian consumers and media alike. The partnership between these brands and COTTON USA generated extensive media coverage in prestigious titles such as Marie Claire Maison and Home. Consumer impressions totaled over 5.2 million, resulting in an earned advertising value of $270,000.