2009-crop Average Price Received Still
Inching Up As Marketings At 9.2 Mil. Bales

Friday, August 6, 2010                                By Shawn Wade

      Cumulative 2009 Upland cotton marketings through the month of June 2010 now total 9.238 million-bales according to information released July 30, 2010 by the USDA National Agricultural Statistics Service.

     USDA estimated June 2010 cotton marketings at 299,000 bales with an average selling price of 67.60 cents per pound. The preliminary mid-month price reported for July 2010 was 67.50 cents per pound.

      The 2009 Upland cotton Weighted Average Price calculated through June 2010 now stands at 62.10 cents per pound with only one month of data to be added before computing the final marketing year average price.

      Currently the estimated 2009 Upland cotton Weighted Average Price is 10.10 cents above the 52-cent threshold where the Upland cotton Counter-cyclical payment rate begins to drop below the statutory maximum rate. Based on the current numbers the estimated marketing year-end Counter-cyclical payment rate has now fallen to 2.48 cents per pound.

      Producers who received the 1.03 cent 2009 advance Counter-cyclical program payment could see a final payment rate equal to 1.45 cents per pound if there are no significant revisions in the preliminary monthly data already reported.

      With such a small difference between the 2009 CC advance payment amount and the projected final payment rate it is entirely possible for revisions in preliminary data to alter the calculated Weighted Average Price that will determine the final CC payment rate.

      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 2009 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 only one month of data remaining to be reported it seems unlikely that the calculation based on preliminary data 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 1.45 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 June 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)





(000's of Running bales)







August 09





September 09





October 09





November 09





December 09





January 10





February 10





March 10





April 10





May 10





June 10





July 10





Source: National Agricultural Statistics Service; * = preliminary

WPS Pesticide Handler Training August 11

Friday, August 6, 2010                         By Shawn Wade

      On Wednesday, August 12 High Plains cotton producers that employ farm hands who work loading and mixing chemicals or in the field following chemical applications can help their employees earn an EPA Pesticide Handler card.

      EPA Worker Protection Standard (WPS) regulations require all persons who work with or around pesticides to go through the EPA Pesticide Handler training course and earn a valid EPA Pesticide Handler card.

      The August 12 training sessions will be held in Brownfield at the Brownfield Church of Christ Family Life Center located at 506 N. Atkins in Brownfield. Both sessions are offered in English.

Pesticide Handler Training

Wednesday, August 11, 2010

Session 1: 10:00 - 11:00 a.m. OR Session 2: 2:00- 3:00 p.m.

Where:       Brownfield Church of Christ Family Life Center

506 N Atkins, Brownfield

Cost: FREE

If you have any questions, please call
Texas AgriLife Extension Service - Terry County






The COTTON USA Advantage

CCI Fax - August 6, 2010

      COTTON USA in Korea receives a record amount of free press in 2009/2010. The COTTON USA program leveraged a combination of public relations events and both consumer and trade insertions to give its best exposure to date in Korea. The coverage included 335 placements equivalent to $3.3 million dollars in advertising value for the 2009/2010 Market Access Program (MAP) year in print, Internet and broadcast media. The majority of the coverage was tied to events around the Korea cotton day and pre-event activities.

      CCI conducts Global Lifestyle Monitor (GLM) presentations in Colombia. COTTON USA presented GLM 2010 results to companies located in Bogotá and Medellin, revealing the most up-to-date information about Colombians' purchasing habits and how they compared to the habits of consumers in the nine other countries where research took place. Various groups from knitting, weaving, garment manufacturing companies and fabric brokers attended the presentations along with leading retailers such as Almacenes Exito and Carrefour.

      In addition, new players in the retail business such as Zara and Falabella were present at the meetings. CCI included for the first time macroeconomics data to analyze Colombian consumer expenditures on clothing and household textiles in 2009 and expected 2010 expenditures. Via the GLM results, attendees understood the limitations in consumers' knowledge regarding attributes that make apparel environmentally friendly. They also learned how consumers are influenced by personal concerns such as child labor practices and global warming.

      COTTON USA educates 305 salespeople about the advantages of U.S. cotton, COTTON USA and techniques to close sales at retail. Results from the 2009 COTTON USA Mark Tracking that surveyed 500 Thai consumers showed that 40 percent of consumers agreed that the COTTON USA Mark influences their purchasing decisions, and 46 percent of consumers have bought products labeled with the COTTON USA Mark. To improve the salesperson's confidence, attitude and product knowledge, COTTON USA, Jockey and John Henry organized a sales training seminar for their salespeople from nationwide stores in Pattaya.

      COTTON USA hired a professional sales trainer, to lead the full-day training. Cotton, the advantages of U.S. cotton and COTTON USA were covered, and pre- and post-tests were administered to measure effectiveness. Pre-test scores averaged at 55 percent and post-test scores increased significantly to 98 percent. More than 96 percent of the participants agreed that they would join this type of seminar if held again in the future. In 2009, Jockey labeled 651,898 pieces and John Henry labeled 284,799 pieces with COTTON USA hangtags.

      CCI Japan's public relations programs receive more than $2.5 million in earned advertising value (EAV). The objective of CCI Japan's public relations strategy is to showcase the benefit of the COTTON USA Mark and U.S. cotton in a variety of media, including television. CCI's PR activities over the course of the Market Access Program marketing year 2009/10 had 250 million consumer impressions. CCI Japan's in-house efforts garnered $1.1 million of the total, while COTTON USA events captured the remaining EAV.

      Sanwa Company joins COTTON USA family in Japan. Sanwa Company, a casual wear apparel brand, recently signed a COTTON USA license for their "Finemente" brand T-shirts. Sanwa Company initially plans to label 50,000 pieces with the COTTON USA Mark for the fall-winter season.


Texas NCC Producer-Ginner Conferences

Dates, times and locations

Monday, August 16: 10:00 a.m. - 2:30 p.m.
Lubbock, TX - Texas Tech University Animal & Food Sciences Building, Room 101.
(NW of United Spirit Arena and the intersection of 18th Street and Indiana Ave.)

Thursday, August 19: 9:00 a.m. - Noon
Haskell, TX - Haskell Civic Center, 200 South Avenue B

Thursday, August 19: 9:00 a.m. - Noon
San Angelo, TX - Texas AgriLife Research & Extension Center, 7887 US Highway 87, North

      Lunch will be provided to participants at all three meetings; however, RSVPs are requested so that an accurate estimate of attendees can be tabulated. Producers, ginners and agri-business people who are planning to attend the meetings are encouraged to RSVP their intentions to NCC Member Services staff from their area. To RSVP or for additional information contact any of the following:

•  Brett Cypert - (325) 895-1841 - bcypert@cotton.org

•  Susan Everett - (806) 441-7480 -severett@cotton.org

•  Mike Johnson - (580) 335-1947 - mjohnson@cotton.org

•  Rick King - (806) 777-1234 - rking@cotton.org