1ST QUARTER PRICE/MARKETING FIGURES ISSUED;
2010 SALES & PRICES COULD BE ON RECORD PACE

Friday, December 3, 2010                         By Shawn Wade

      Cumulative Upland Cotton marketings for the first three months of the 2010 marketing year totaled 3.086 million bales according to information released November 30 by the USDA National Agricultural Statistics Service.

      While this level of marketings over the first three months of the year has been matched a couple of times in the recent past, the statistic to keep our eye on may be reported monthly prices.

      It is hard to imagine that prices would fall below those noted for the first three months during the remainder of the 2010 marketing year considering how scarce uncommitted cotton is in the market place. However, allowing for the possibility of that unlikely event, it seems clear that 2010 is on pace to easily set a new record for Average Price Received by growers.

      The current record Average Price Received according to USDA NASS was established in 1995 and stands at 75.4 cents per pound. Second on the list is an average price of 74.4 cents per pound set in 1980.

      So far the 2010 Upland Cotton Weighted Average Price, calculated through October 2010, stands at 77.44 cents per pound. The preliminary mid-month price reported for November 2010 is 80.10 cents per pound.

      The first month of the 2010 marketing year included August prices that averaged 77.20 cents per pound and total marketings of 387,000 bales. September a slight decrease in the average price received to 74.70 cents per pound, but slightly higher level of marketings at 496,000 bales for the month.

      According to the USDA figures released November 30, October 2010 tallied an impressive increase in marketings with 2.203 million bales reported at an average selling price of 78.10 cents per pound.

      As would be expected based on the recent rise in cotton prices since the beginning of the 2010 marketing year, the pace of shipments during the first quarter of the 2010 Upland Cotton marketing year reflects a strong interest in competitively priced U.S. cotton and is good news to growers.

      With market reports indicating that the pool of cotton still available for sale is rapidly shrinking, it appears the market fundamentals that have the March 2011 ICE futures contract trading over $1.30 cents per pound, and are keeping West Texas cash prices above $1.20 cents per pound, will continue to influence the market for quite some time.

      One of the interesting things to note about the marketing and price information reported for the first three months is how different the prices reported for cotton shipped thus far are from what recent cash prices have been. The natural presumption about these differences is that they reflect sales made earlier in the 2010 calendar year and prior to the recent run-up.

      An extension of that thought leads to the conclusion that prices reported for later sales will eventually reflect increased prices.

      With a majority of the crop priced by growers or committed to marketing pools that will have pre-sold an unknown amount of cotton before the major portion of the run-up of both futures and cash prices, it is unclear exactly now much upside exists for the 2010 Average Price Received data and how far above the 1995 record price of 75.4 cents it might go.

      The following table shows the average price received each month by farmers and the associated weighted average price based on prices and cumulative marketings reported from August 1 through October 31, 2010.

      The 2010 Counter-cyclical payment rate authorized under the 2008 Farm Bill would 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 2010 marketing year. The 2010 cotton marketing year began in August 1, 2010 and ends July 31, 2011.

Average Price Received For 2010-crop Upland Cotton
(Weighted by Marketings)

 

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August

387

387

77.20

77.20

September

496

883

74.70

75.80

October

2,203

3.086

78.10

77.44

November

n/a

n/a

80.10*

n/a

Source: National Agricultural Statistics Service; * = preliminary

 

2011 BELTWIDE COTTON CONF. PROGRAM RELEASED;
EARLY REGISTRATION ENDS DECEMBER 14

Friday, December 3, 2010                         By Shawn Wade

      The National Cotton Council (NCC) has announced the final program for the 2011 Beltwide Cotton Conferences to be held January 4-7, 2011 in Atlanta, GA. This year's Beltwide will feature a slightly revamped schedule designed to allow greater availability of key workshops to growers and other conference attendees.

      It should also be noted that individuals interested in attending the 2011 Conferences are being reminded that December 14, 2010 marks the deadline for Beltwide participants to receive discounted pre-registration pricing and also discounted room rates at the Atlanta Marriott Marquis hotel, the 2011 Beltwide host hotel.

      Complete information about the 2011 Beltwide conferences, including a downloadable final program and links to online registration and hotel reservations, are available through the NCC's Beltwide Cotton Conference web page:

http://www.cotton.org/beltwide/

      NCC and Cotton Foundation members along with researchers, consultants, Extension personnel and association representatives can register for $125 through December 14. After that date, the registration cost is $150 for members of those groups.

      Registration and housing reservations can be easily completed online by visiting the BWCC website, and clicking on the respective registration and housing links. Room reservations must be made by December 14th to ensure the conference rate. Room reservations can be made online (http://cwp.marriott.com/atlmq/beltwidecottonconference) or by calling the Atlanta Marriott Marquis directly at (866) 469-5475.

 

Want the facts about the U.S. farm policy. Get what you need at:


www.farmpolicyfacts.com

 

 

THE COTTON USA ADVANTAGE

CCI FAX - December 3, 2010

 

         CCI and Cotton Incorporated sponsor "The Cotton Forum" in Mexico City. Thirty textile and garment manufacturers from Mexico, the U.S., Colombia and Peru exhibited their U.S. cotton-rich woven and knit fabrics and garments to domestic buyers at the event. A U.S. cotton conference focused on consumer behavior and fashion forecasting for Fall/Winter 2010-11. The event concluded with a private fashion show featuring Mexican designers enhancing the advantages of cotton fabrics produced by textile mills from Mexico and Colombia. The event also was a networking venue for COTTON USA partners to extend contacts to the Mexican market.

         CCI and Cotton Incorporated participate in 2010 Intertextile Shanghai. CCI and Cotton Incorporated joined forces again this year to promote U.S. cotton at Intertextile Shanghai. Several COTTON USA licensees joined CCI to present a comprehensive array of U.S. cotton products and services. CCI's section of the booth was themed "Naturally Connecting the World" and featured a series of U.S. cotton-rich products. Supima also displayed products. CCI participated in seven media interviews during the show. Additionally, CCI was featured on the front page of the Intertextile Express, the show's daily newspaper. A record number of companies from 20 countries and regions exhibited at this year.

         CCI and Punto Blanco launch "Let's Go Dancing" retail promotion in Colombia. The co-branded promotion encourages Colombian consumers to purchase COTTON USA-labeled products and cotton- rich products through Dec. 28. The promotion runs at 115 stores, including Almacenes Exito, Carrefour, La 14 and Punto Blanco's own stores. Consumers who purchase COTTON USA Mark-labeled products and cotton-rich products will have a chance to get a "Let's Go Dancing" special edition book. CCI designed a "welcome" light box on its webpage directly linked to Punto Blanco's site to increase consumers' participation.

 

         CCI China & Hong Kong host seminar on the cotton price and market outlook for 2011. Sponsored by CCI and co-organized by the Hong Kong Association of Textile Bleachers, Dyers, Printers and Finishers and the Hong Kong Cotton Spinners Association, the seminar was held at the Clothing Industry Training Authority. The event gave participants an insider view of the cotton and textile trade market under the influence of recent fluctuations in cotton price. The seminar agenda was set according to the flow of the textile supply chain and speakers from different segments of the industry gave their perspectives on cotton price. More than 120 trade professionals attended the seminar including cotton spinners and weavers, fabric dyers and printers, garment manufacturers, traders and sourcing agents.

      CCI promotes U.S. cotton at the fourth Expotextil in Peru. More than 20,000 visitors attended Expotextil, the second largest textile show in Peru with more than 146 exhibitors. Leading textile companies that use U.S. cotton, held business meetings with regional buyers during the show. The COTTON USA Mark was displayed on a banner at the show's entrance and included on materials distributed to attendees.

 

COTTON QUALITY REPORT

      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

128,221

21+ - 85.0%

31 – 9.2%

2.17

35.42

Lubbock

400,128

21+ - 88.4%

31 – 8.4%

2.25

35.95

 

Mike

Strength

Uniformity

Bark

Lamesa

4.41

29.88

80.74

8.2%

Lubbock

4.01

30.30

80.51

7.6%

 

 

Season Totals To Date:

 

Office

Bales

Color

Leaf

Staple

Lamesa

752,519

21+ - 83.2%

31 – 11.1%

2.29

35.32

Lubbock

2,438,080

21+ - 86.5%

31 – 8.8%

2.37

35.98

 

Mike

Strength

Uniformity

Bark

Lamesa

4.41

29.63

80.76

8.2%

Lubbock

4.01

30.31

80.63

7.2%

Source: USDA AMS