2010 cottons week header
PHYTOGEN_CMYK_275x77px
twitter
October, 26 2012
 

CAAG2PHYG085_PhytoGen_Harvests_National_289x640_STATIC_200K_03-15

™ ®Trademarks of Corteva Agriscience and its affiliated companies. ©2024 Corteva.




 
PAST ISSUES/ARCHIVES
 
Cotton's Week: March 22, 2024
Cotton's Week: March 15, 2024
Cotton's Week: March 8, 2024
Cotton's Week: March 1, 2024
 
 


 
Brazilian Ambassador Addresses WTO Dispute

At a recent meeting organized by the US Chamber of Commerce, Ambassador Roberto Azevedo, Brazil's permanent representative to the WTO and chief negotiator, said that after two days of discussions with US officials, there has been no progress in resolving the longstanding WTO case against cotton and export credit guarantees.

Azevedo also told those in attendance that the Framework Agreement, negotiated between the US and Brazil in 2010, under which Brazil agreed to delay any retaliatory action against US exports while new farm legislation is developed, will be extended for a brief period. Although he warned that Brazil is prepared to apply prohibitively high tariffs to select US products and possibly ignore intellectual property rights if there is no resolution by early 2013.

According to Azevedo, the cotton and export credit guarantee program provisions included in the Senate and House agriculture bills do not fully address Brazil's objections. He contended that the new provisions are as distorting and damaging to Brazilian farmers as current law—a questionable contention since the new cotton program is estimated by the Congressional Budget Office to be 50% less expensive than extending current law.

Azevedo said Brazilian officials are willing to discuss "some parameters to the support that would be acceptable."

In interviews following the meeting, Azevedo made several additional points. He said Brazil is willing to work "on the basis of what is on the table" when it comes to the Stacked Income Protection Plan (STAX) as well as the general crop insurance and marketing loan program proposals contained in House and Senate legislation. He emphasized that Brazil seeks to alter some provisions of the proposed programs to make them more acceptable.

He suggested that the US should determine how a three-party negotiation can "operate in a reasonably efficient manner." In order to prepare for the possibility of retaliation, the ambassador said Brazil has formed a technical working group that will evaluate options for retaliation in the event the dispute is not settled through negotiation. The technical group is examining issues related to intellectual property rights because the WTO has granted Brazil the right to cross-retaliate under certain circumstances.

The level of retaliation against US exports and intellectual property is adjusted annually using a WTO formula. The most recent data would allow significantly lower retaliation than earlier data and would not allow cross-retaliation. Azevedo has previously suggested Brazil is entitled to use older data to calculate retaliation. It has been estimated that using the older data could provide Brazil nearly $1 billion in overall retaliation rights and as much as $269 million in cross-retaliation. Using more recent data would allow far lower levels of retaliation of approximately $500 million for goods and no authority for cross-retaliation.

Earlier in the week, Brazilian officials addressed the WTO's Dispute Settlement Body (DSB) in Geneva and stated that Brazil has decided not to terminate the Framework Agreement in place since 2010 and would not implement retaliatory actions as authorized by the WTO. The Framework is set to expire when Congress passes "successor legislation" to the 2008 Farm Bill. Since the 2008 law expired without being replaced or extended, there have been questions about Brazil's next action. At the DSB meeting, Brazil noted that it is following the on-going discussions in Congress over new farm legislation.

In a statement to the DSB (see www.cotton.org/issues for the full statement) Brazil said some of the proposals "do not seem to be in line" with the WTO panel's findings in the dispute, and may even increase trade-distorting subsidies.

 
USDA, EPA Host Honey Bee Health Conference

The Federal Colony Collapse Disorder Steering Committee (CCD SC) held a national stakeholder conference seeking input on issues involving honey bee health.

The CCD SC (comprised of representatives from USDA and EPA) invited stakeholder representatives from beekeepers, advocacy groups, state agencies, beekeeper manufacturers, commodity groups, agrochemical producers and government/academia researchers to Arlington, VA, for a two-day session to review progress and gather input for future research needs. Opening remarks were presented by USDA Deputy Secretary Kathleen Merrigan, EPA Deputy Administrator Bob Perciasepe and National Institute of Food & Agriculture Director Sonny Ramaswamy. The CCD SC organized breakout groups to focus on items in nutrition, biology, genetics/breeding, pesticides, pathogens and arthropods.

NCC staff participating in the conference's pesticide section encouraged USDA to ensure pesticide research includes crop experts and pollinator experts in order to avoid results that fail to represent field-relevant operations and pollinator behavior. Also urged were: landscape ecology studies to provide a better understanding of where and when pollinators feed on various crops; utilization of bee models to identify significant parameters that would affect colony survival in order to prioritize research needs; identification of funding opportunities that would allow partnerships with industry without penalizing researchers (researchers receiving funding from private industry are excluded from most federal expert panels although federal funding is not available for those type research needs); improvement of beekeeper access to public lands in order to avoid pesticide risks in croplands; and improvement of communication of supporting science that identifies measures crop producers can use to greater reduce pesticide risks to honey bees in crop landscapes.

The stakeholder comments were taken into consideration by the steering committee and will be part of a congressional report. The Congressional mandate affiliated with the action is contained in the '08 farm law (section 7204[h][4]).

The fourth annual report is at www.ars.usda.gov/is/br/ccd/ccdprogressreport2012.pdf.

 

EPA Hosts Pollinator Protection Campaign Forum

The 12th Annual North American Pollinator Protection Campaign (NAPPC) International Conference was held at EPA headquarters in Crystal City, VA, on Oct. 17-19, to review annual accomplishments and plan new action items.

NAPPC is a collaboration of scientists, researchers, conservationists, government officials and diverse volunteers throughout North America that promotes programs to protect pollinators and to raise pollinator-related issues. Members choose a task force of interest from numerous task force groups. The annual meeting provides an opportunity for task force groups to meet independently for a review of their accomplishments over the previous year and to identify goals for the coming year.

NCC staff participated in the NAPPC Pesticide Task Force, which reported as a previous accomplishment the publication of two brochures targeting pollinator protection and publication of "Pollinator Week," a public awareness campaign. The task force previewed a draft version of a video being developed for Pesticide Applicator Continuing Education Credit (CEC). The focus of the video is on best management practices (BMPs) for applicators to protect pollinators. Once finalized, state agencies will determine if viewing the material qualifies as CECs for Pesticide Applicators.

NCC staff urged the task force to consider that BMPs vary across different regions of the country and the proposed focus on "spray at night" should not be promoted as the only BMP. Additionally, NCC staff urged reconsideration of the proposed interpretation of label language for pollinator protection -- commenting that the legal authority for label language and definitions for label language resides with EPA. The task force decided a regional version of a pesticide applicator training video was  appropriate and EPA would be consulted to clarify the meaning of label language.

NAPPC is managed by the 501(c)3 nonprofit Pollinator Partnership (www.pollinator.org). NAPPC partners worked to secure pollinator programs in conservation and research titles of the '08 farm law, worked with USDA Secretary of Agriculture and with the Senate to create National Pollinator Week at both federal and state levels, developed more than 31 web-based regional planting guides for pollinator-friendly landscapes.

The 13th Annual NAPPC International Conference will be tentatively hosted by the Dept. of Interior in Washington, DC, on Oct. 22-24, '13.

 
Gins, Cottonseed Storage Facilities Registration Required

As a part of the Food Safety Modernization Act (FSMA), all facilities (including cotton gins and cottonseed storage) that manufacture, process, pack or hold food for human or animal consumption within the United States or foreign facilities that export to the United States must re-registerin even numbered years beginning with '12.

Gins and cottonseed storage facilitieswere required to register in '03 under the Food & Drug Administration (FDA) Food/Feed Bioterrorism Rule. The FSMA will incorporate the existing FDA Food/Feed Bioterrorism Rule. Details are at www.fda.gov/Food/FoodSafety/FSMA/ucm314178.htm

NCGA Executive Vice President Harrison Ashley said there is no cost for gins or cottonseed storage facilities, which this year and bi-annually thereafter must re-register (or register this year if not previously registered).

To access online registration instructions and form, go to: www.fda.gov/Food/GuidanceComplianceRegulatoryInformation/RegistrationofFoodFacilities/ucm073728.htm

 

Ginning Sessions Offering Timely Reports

The '13 Beltwide Cotton Ginning Conference will offer ginner attendees multiple reports with practical applications. The conference is one of 11 technical conferences to be held at the '13 Beltwide Cotton Conferences, Jan. 7-10 at the Marriott Rivercenter/Riverwalk hotels in San Antonio. Registration and hotel information for the forum is atwww.cotton.org/beltwide.

The '13 Cotton Ginning Conference's two sessions are planned for Wednesday, Jan. 9 from 1:30-6 pm and Thursday, Jan. 10 from 8 am-12pm. The program will include reports covering new equipment/developments, energy use and the newly designed grid bars to improve fiber quality.  Among other presentations will be a focus on the removal of John Deere round module wrap and the quality issues associated with the '12 crop as well as updates on several ongoing projects, specifically, moisture measurements and air gin emissions sampling.The final program will be posted on the National Cotton Ginners Assoc. (NCGA) website at www.cotton.org/ncga/index.cfm.

NCGA President Lee Tiller encourages ginners to attend the ginning conference, which provides a forum for researchers and industry representatives to exchange information on new technology to improve gin operation efficiency and the preservation of fiber quality. Industry issues are addressed by researchers and industry experts covering areas such as innovative management strategies, energy conservation, environmental regulations and compliance, labor law compliance and safety. A joint session with the Cotton Engineering Systems Conference will include the most recent cotton ginning and harvesting research results.

Tiller said all ginners attending the Beltwide are welcome and encouraged to attend the NCGA's committee meetings being held during the forum. The meetings will begin at 1:30 pm on Tuesday, Jan. 8, and conclude at noon on Wednesday, Jan. 9. These meetings will focus on safety, labor, legislation and technology.

 

Sourcing USA Summit Seeing Strong Support

The '12 Sourcing USA Summit, set for November at Terranea® near Los Angeles, CA, now has 32 company sponsors, including US cotton exporters and allied industries.

This year's event will attract key executives from leading textile mills from around the world and the major US cotton exporting firms. The Summit provides a forum to discuss key issues facing the cotton textile supply chain.

Cotton Council International and Cotton Incorporated expressed their gratitude to those sponsors: Jess Smith & Sons Cotton, Plains Cotton Cooperative Assoc., San Joaquin Valley Quality Cotton Growers Assoc., Toyoshima, Omnicotton, ECOM Cotton, J.G. Boswell Co., Staplcotn, Calcot, Allenberg Cotton Co., ACG Cotton Marketing LLC, Cargill Cotton, White Gold Cotton LLC, Olam, Cotton Growers Coop, Toyo Cotton Co., Noble Cotton, Baco Trading, Glencore Trading and Supima.

This year's allied industry sponsors include: Wakefield Inspection Services, Steadfast Futures & Options /LOGIC Advisors, Monsanto, Cotton Market and Risk Management Consulting, Cargo Control Group, CoBank ACB, Uster Technologies, Rieter Textile Systems, Bayer CropScience/FiberMax & Stoneville, ICE Futures U.S., Intertek and Cotton Outlook.

 
Sales, Shipments Lag

Net export sales for the week ending October 18, 2012 were 50,500 bales (480-lb.). This brings total '12-13 sales to approximately 6.2 million. Total sales at the same point in the '11-12 marketing year were approximately 7.7 million bales. Total new crop ('13-14) sales are 270,600 bales (480-lb.). Shipments for the week were 80,000 bales, bringing total exports to date to 1.8 million bales, compared with the 1.1 million bales at the comparable point in the '11-12 marketing year.

 

 
Effective Oct. 26-Nov. 1, ’12

Adjusted World Price, SLM 11/16

 63.43 cents

*

Fine Count Adjustment ('11 Crop)

 0.96 cents


Fine Count Adjustment ('12 Crop)

  1.16 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

13


Special Import Quota (480-lb bales)

821,204


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 

Five-Day Average

Current 5 Lowest 3135 CFR Far East

83.68 cents


Forward 5 Lowest 3135 CFR Far East

NA


Coarse Count CFR Far East

NA


Current US CFR Far East

85.75 cents


Forward US CFR Far East

NA


 

'12-13 Weighted Marketing-Year Average Farm Price  
Year-to-Date (Aug.)

71.40  cents

**


       
**Aug.-July average price used in determination of counter-cyclical payment