2013 Upland Cotton Loan Chart Now Available

Friday, April 26, 2013                               By Shawn Wade

      The United States Department of Agriculture Farm Service Agency released the 2013-crop Upland Cotton Loan Premium and Discount tables on April 15 and it appears that there have been some positive changes from the 2012 tables.

      Most of the adjustments to the 2013 table of premiums and discounts were confined to the upper right quadrant of the loan chart and continues the trend of recent years of higher quality cotton gaining value compared to cotton of lower quality that is discounted more each year.

      Most of the positive changes for 2013 occurred in cotton Staple length 34 or greater in the White and Light Spotted Color grades (Color grades 11-71 and 12-62, respectively) with Leaf grade 5 or better. Cotton within this range generally will see higher loan values with premiums increasing 0-25 points.

      Almost all of the changes for cotton Staple length 34 and shorter resulted in larger discounts that ranged from 20 to 40 points. It bears noting that cotton with staples lengths below an inch were hit hardest with additional discounts ranging from 80 to 115 compared to the previous year.

      Changes in the 2013 premiums and discounts for Bark and Extraneous matter, Micronaire, Strength, and Length Uniformity were somewhat mixed.

      The most noticeable change in this section of the loan table is slightly lower discounts for Micronaire readings below 3.5. The only discounts that increased in the Micronaire table were for Micronaire range 5.0 to 5.2, which increased by 40 points to -270 points, and the highest Micronaire group (5.3 and above), which increased 45 points to -385 points per pound. Lower discounts for low Micronaire cotton ranged from 5 to 40 points.

      Strength discounts were lowered 15 to 70 points for values below 25 grams per tex (g/tex), but that change was largely offset by smaller premiums for strength measurements above 30 g/tex.

      The table below provides comparisons between 2012 and 2013 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

      Complete 2013 Loan Premium and Discount tables and loan charts with calculated values based on the 2013 schedule of premiums and discounts will be posted on the Plains Cotton Growers website at: http://www.plainscotton.org.


COMPARISON OF LOAN PREMIUMS AND DISCOUNTS FOR SELECTED

GRADE, STAPLE LENGTH, AND LEAF CONTENT COMBINATIONS

OF 2013-CROP AMERICAN UPLAND COTTON

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

 

Staple

34

35

36

37

38+

Color

Leaf

2012

2013

Change

2012

2013

Change

2012

2013

Change

2012

2013

Change

2012

2013

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

SM &

Leaf 1-2

210

210

0

445

455

10

530

550

20

545

570

25

550

575

25

better

3

180

185

5

375

380

5

460

475

15

480

495

15

485

505

20

11 & 21

4

100

105

5

230

230

0

295

310

15

310

320

10

310

325

15

 

5

-55

-45

10

115

130

15

170

185

15

190

195

5

190

195

5

 

6

-305

-295

10

-230

-235

-5

-215

-220

-5

-205

-215

-10

-205

-215

-10

 

7

-455

-450

5

-395

-410

-15

-375

-390

-15

-370

-385

-15

-370

-385

-15

MID

Leaf 1-2

160

160

0

370

370

0

465

485

20

475

495

20

480

505

25

31

3

150

150

0

340

345

5

410

430

20

420

440

20

425

450

25

 

4

70

80

10

190

190

0

260

270

10

270

280

10

270

285

15

 

5

-100

-100

0

80

90

10

120

135

15

135

145

10

135

145

10

 

6

-320

-305

15

-265

-270

-5

-240

-245

-5

-230

-240

-10

-230

-240

-10

 

7

-460

-455

5

-425

-435

-10

-400

-415

-15

-390

-410

-20

-390

-410

-20

SLM

Leaf 1-3

50

45

-5

145

145

0

190

200

10

195

205

10

195

210

15

41

4

Base

Base

Base

85

80

-5

125

135

10

130

140

10

130

145

15

 

5

-205

-195

10

-150

-135

15

-95

-65

30

-95

-65

30

-95

-65

30

 

6

-395

-385

10

-350

-340

10

-325

-315

10

-325

-315

10

-325

-315

10

 

7

-575

-560

15

-545

-525

20

-530

-510

20

-530

-510

20

-530

-510

20

SM &

Leaf 1-2

75

75

0

190

180

-10

260

260

0

270

265

-5

270

265

-5

better

3

60

60

0

160

150

-10

225

225

0

235

230

-5

235

230

-5

12 & 22

4

-5

-15

-10

115

100

-15

185

175

-10

195

180

-15

195

180

-15

 

5

-200

-210

-10

-120

-125

-5

-95

-95

0

-85

-95

-10

-85

-95

-10

 

6

-405

-410

-5

-365

-375

-10

-365

-370

-5

-355

-365

-10

-355

-365

-10

 

7

-580

-580

0

-545

-545

0

-535

-535

0

-530

-530

0

-530

-530

0

MID

Leaf 1-2

-25

-20

5

40

30

-10

95

75

-20

95

85

-10

95

90

-5

32

3

-45

-45

0

15

15

0

85

70

-15

85

75

-10

85

75

-10

 

4

-145

-140

5

-60

-65

-5

10

-10

-20

10

-10

-20

10

-10

-20

 

5

-310

-300

10

-260

-250

10

-230

-220

10

-230

-220

10

-230

-220

10

 

6

-475

-470

5

-440

-435

5

-425

-420

5

-425

-420

5

-425

-420

5

 

7

-645

-635

10

-615

-600

15

-610

-590

20

-610

-590

20

-610

-590

20

SLM

Leaf 1-3

-170

-165

5

-95

-90

5

-35

-25

10

-35

-25

10

-35

-25

10

42

4

-210

-200

10

-145

-135

10

-95

-85

10

-95

-85

10

-95

-85

10

 

5

-365

-360

5

-305

-295

10

-290

-280

10

-290

-280

10

-290

-280

10

 

6

-515

-505

10

-480

-475

5

-465

-460

5

-465

-460

5

-465

-460

5

 

7

-695

-685

10

-660

-645

15

-655

-635

20

-655

-635

20

-655

-635

20