FSA Issues Final '10 Direct Payments;
Sets Final '09 CC Payments For Cotton & Peanuts

Friday, October 15, 2010                           By Shawn Wade

      USDA's National Agricultural Statistics Service announced the revised Average Price Received by Growers for the 2009 Upland cotton marketing year on October 8, 2010. That same day the USDA Farm Service Agency (FSA) published a notice to State and County offices (Notice DCP-243) which detailed the final Counter-cyclical Program payment rates for Upland cotton and Peanuts.

      The FSA notice also authorized State and County offices to begin processing the final 2009 Upland cotton and Peanut Counter-cyclical program payments on or about October 8.

      As was detailed in last week's "Cotton News," the revised figures only made a small difference in the final 2009 Counter-cyclical payment rate. Officially the FSA notice confirmed PCG's estimate of a final 2009 Counter-cyclical payment rate of 1.68 cents per pound.

      Growers who asked for and received an advance 2009 Counter-cyclical payment in February 2010 will receive a final payment rate equal to 0.65 cents per pound ($0.0065/lb.), the difference between the final CC payment rate and the 1.03 cent per pound advance payment rate.

      For Peanuts the final 2009 Counter-cyclical payment rate was set at 1.25 cents per pound. Like cotton, peanut growers who received the 2009 advance Peanut Counter-cyclical payment of 0.46 cents per pound ($0.0046/lb.) earlier in the year can expect a final Peanut CC payment equaling 0.79 cents per pound ($0.0079/lb.)

      Revised Upland cotton monthly marketing and price numbers will be published at the end of October 2010.

 

With Over 200,000 Bales Ginned;
Quality Appears Good For 2010 Cotton

Friday, October 15, 2010                           By Shawn Wade

      Early classing office results for the 2010 High Pains cotton crop indicate the region is still on the right track and will augment a high volume of production with an equally high level of quality cotton.

      Anyone interested in keeping track of how the crop is doing quality-wise can get what they need from the USDA Agriculture Marketing Service's Cotton Division. The USDA AMS Cotton Division does a great job of keeping the industry informed about the overall quality of the crop from each growing region as it is ginned and brought in for grading.

USDA AMS Cotton Program reports can be found here: http://www.marketnews.usda.gov/portal/cn Just click the report you want from the "Popular Reports" section to see an online version of the latest cotton classing data.

      If you would refer to receive the information by email go to:

http://usda.mannlib.cornell.edu/MannUsda/aboutEmailService.do

From this page you can create a new user account and subscribe to the reports you would like to receive each day or each week in you email Inbox.

2010 First Glance

      With cotton harvest getting off to a rolling start in 2010 it is unusual to note that we have seen cotton being harvested and ginned for over three weeks, but have just now eclipsed the 200,000 bales classed threshold at the Lubbock and Lamesa USDA Cotton Classing offices.

      Interestingly, the High Plains hit the 200,000-bale mark about a week earlier during the 2009 harvest. What differentiates the 2010 crop from 2009, however, is the significantly higher set of expectations for yield and quality in this harvest season.

      In 2009 the first 200,000 bales classed represented approximately 5 percent of the total bales expected from that year's crop. For 2010 the 211,598 bales that the Lubbock and Lamesa classing offices have processed through October 14 represent only 3.4 percent of the 2010 crop, which is expected to total 6.16 million bales by USDA.

      A deeper look at the reports from the two offices indicates they have each received good quality cotton early on with indications that average grades at both locations are likely to move up as more of the 2010 crop is harvested and ginned.

      Thus far both offices show over 70 percent of the bales classed have been Color grade 21 or 11, while Leaf and Micronaire readings have been equally good. So far Leaf grades are averaging less than 3, while Micronaire is averaging 4.0 or better at both offices.

      About the only measurement starting out a little below the normal curve so far has been Length; although this figure should improve as additional higher yielding cotton is harvested. At this time the Lubbock office is averaging a 35.37 staple length and the Lamesa office's average is slightly lower at 34.90.

      The following is a summary of the cotton classed at the Lubbock and Lamesa USDA Cotton Division Cotton Classing Offices for the 2010 production season.

 

2010 High Plains Cotton Quality Summary

 

Current Week:

 

Office

Bales

Color

Leaf

Staple

Lamesa

29,041

21+ - 76.7%

31 - 20.0%

2.45

34.90

Lubbock

138,998

21+ - 85.7%

31 - 10.9%

2.49

35.37

 

Mike

Strength

Uniformity

Bark

Lamesa

4.32

28.79

80.66

6.1%

Lubbock

4.02

29.50

80.40

4.4%

 

 

Season Totals To Date:

 

Office

Bales

Color

Leaf

Staple

Lamesa

37,170

21+ - 73.8%

31 - 19.5%

2.49

34.88

Lubbock

174,428

21+ - 85.0%

31 - 10.1%

2.49

35.34

 

Mike

Strength

Uniformity

Bark

Lamesa

4.32

28.86

80.70

6.7%

Lubbock

4.01

29.30

80.35

4.5%

Source: USDA AMS