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September 26, 2014
 

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PAST ISSUES/ARCHIVES
 
Cotton's Week: April 12,2024
Cotton's Week: April 5, 2024
Cotton's Week: March 22, 2024
 
 


 
Transition Payment Sign-up Deadline Nearing

Producers are reminded that sign-up for the Cotton Transition Assistance Program (CTAP) is underway at county Farm Service Agency offices. The deadline for application is Oct. 7, '14.

The CTAP payment rate equals 5.4 cents per pound times the direct payment yield times the '13 upland cotton base on a farm. The payment is subject to a 7.2% sequestration rate if applied for prior to Oct. 1 and 7.3% sequestration rate on or after Oct. 1. If there has been a change in the producer shares of the upland cotton base in '14, a succession of interest application must be filed. As a reminder, the CTAP payment is subject to a separate $40,000 payment limit per person or legal entity.

Further CTAP details and general provisions for ARC and PLC programs are in Federal Register notice 7 CFR Part 1412 at www.cotton.org/issues/2014/upload/14finalregpublic.pdf.

 
Materials Clarify Conservation Compliance Provisions

The Natural Resources Conservation Service (NRCS), Risk Management Agency and Farm Service Agency (FSA) have developed new materials to help clarify conservation compliance provisions for crop insurance participants.

The materials, at www.nrcs.usda.gov/wps/portal/nrcs/detailfull/national/programs/farmbill/?cid=stelprdb1257899, contain a new fact sheet, frequently asked questions (FAQs) and a webinar Q&A section that are on the right of the compliance page in the "What's New" box. Under the USDA Conservation Compliance Process, there is an interactive decision tool that is based on the flow chart of the compliance process. A PDF version of the flow chart can be accessed directly beneath the decision tool.

‎The '14 farm law requires producers to have on file a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026). The farm law linked highly erodible land conservation and wetland conservation compliance with eligibility for premium support paid under the federal crop insurance program. For farmers to be eligible for premium support on their federal crop insurance, a completed and signed AD-1026 form must be on file with the FSA. Because many FSA and NRCS programs have this requirement, most producers already should have an AD-1026 on file. If producers have not filed this form, they must do so by June 1, '15.

 
Dicamba Resistant Cotton Comment Period Extended

USDA's Animal and Plant Health Inspection Service (APHIS) has extended the public comment period to Oct. 10, '14 for its draft environmental impact statement (DEIS) for genetically engineered (GE) cotton (Bollgard II XtendFlex) and soybean plants developed by Monsanto to be tolerant of the herbicide dicamba. The two-week extension is much shorter than the 90-120 day delay that environmental groups were seeking.

The DEIS evaluates the potential environmental impacts of GE cotton resistant to the herbicides dicamba and glufosinate, and soybeans resistant to dicamba. Within a DEIS, the agency lists its available options and indicates its preferred option. APHIS states in the DEIS that its preferred option is to deregulate these GE varieties.

Concurrent with the APHIS regulatory process, EPA is "... conducting risk assessments to decide upon the approval of the proposed new uses of dicamba and glufosinate. This analysis includes a thorough review of any potential human health and environmental risks associated with the application of these herbicides to the GE cotton and soybean plants ... EPA will make available its proposed regulatory decision in the coming months for public review and comment."

To submit comments electronically to the USDA docket on www.regulations.gov, use docket number APHIS-2013-0043.

 
Lint Contamination Prevention Urged

The NCC mailed "Contamination-Free Cotton" flyers to its producer, gin and warehouse leadership – as part of a reminder that preventing lint contamination is everyone's responsibility.

The flyer focuses on pre-harvest, in-season and post-harvest steps that should be taken by producers, ginners and warehousemen to prevent contaminants from getting into seed cotton and baled lint.

All US gins were sent additional flyers and a memo from NCC President/CEO Mark Lange. The gin mailing was necessary because growers and gin employees that may not be on the NCC producer mailing list need to be aware of their responsibilities in preventing contamination.

The NCC undertook this initiative because producers, ginners and warehousemen are the vanguard when it comes to ensuring US cotton maintains its excellent reputation as one of the cleanest growths of cotton. Regardless of the harvest stage that these groups are operating in at this time, they are urged to constantly assess their efforts in preventing contamination.

Additional flyers, along with a separate memo from Lange, were mailed to producer, ginner and warehouse interest organizations as well as to the state Extension cotton specialists. He asked for those groups assistance in making sure producers, ginners and warehousemen place a high value achieving on contamination-free cotton.

 
CCI Tour Focusing on Uniform Industry

Apparel manufacturers from eight Western Hemisphere countries will get an extensive look at US cotton yarn and fabric production on Sept. 29-Oct. 2 as part of Cotton Council International's (CCI) 2014 COTTON USA Western Hemisphere Uniform Manufacturers Tour. The trip's focus is on the uniform/corporate image wear industry – a key market for US yarn and fabrics.

The tour's Latin and South American participants represent 24 companies located in Colombia, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Peru. The participants first will attend a seminar on Sept. 29 in Greensboro, GA, where they will receive cotton market and US uniform market outlooks and hear reports on advancements in cotton technologies and sourcing requirements for the uniform market. They also will participate in a trade fair that includes representatives from nine US-based uniform companies: Aramark, Edwards Garment, G&K Services, Lands' End, OOBE, Parker Uniforms, Superior Uniform Group, VF Corporation and Williamson Dickie.

During the next two days, each participant will get to visit some of the following US-based manufacturers: Alamac American Knits; Antex Knitting Mills; Buhler Quality Yarns; CCW, Inc. ; Contempora Fabrics; Cotswold Industries/Central Textiles; Frontier Spinning Mills; Hamrick Mills; King America Textile Group; Parkdale Mills, Inc.; Swisstex; Tuscarora Yarns and Zagis.

CCI President Jordan Lea, a Greenville, SC, cotton merchant, said, "CCI has focused on the U.S. uniform and corporate image wear market since 2010, a sector that continues to be very robust with about $9 billion in annual sales. This tour will enable CCI to showcase these U.S. manufacturers' production efficiency, their fabrics style versatility and performance properties such as antimicrobial, moisture wicking and flame resistant. We hope exposure of these participants to these companies' superior quality, innovations and service will lead to even more sourcing of the uniform industry in the Western Hemisphere."

This tour is one of many COTTON USA Sourcing Programs that develop business relationships throughout the cotton textile and apparel chain with the objective of increasing US manufactured cotton product exports to the Western Hemisphere.

 
Indian Textile Industry Cotton Growth Explored

More than 50 delegates representing India's cotton textile value chain attended an invitation-only COTTON USA seminar in Bengaluru to explore how cotton can further propel growth in the Indian textile industry. Participating were eight COTTON USA licensees -- Arvind Ltd, Vardhman Group, GTN Textiles, Ambika, Morarjee, GTN Industries, SA Anandaan and Arun Textiles. These mills shared their experiences with using COTTON USA and how the consistency of US cotton has been beneficial in improving their product quality and delivering better financial performances. Prominent mills, apparel manufacturers, brands and retailers also participated, among them: Levi's, Columbia Sportswear and FREECULTR, the first online brand to promote COTTON USA products in India.

Industry experts and key decision makers presented useful insights on India's cotton textile industry. A panel discussion brought together experts from each textile supply chain segment to discuss how successful partnerships can be formed among the upstream and downstream players to propel growth in the textile and clothing sectors.

David Collins, Cotton Council International senior advisor, presented a cotton economic outlook. Marc Lewkowitz, Supima executive vice president, discussed responsible production, adopting the right manufacturing practices and the present supply-demand scenario of extra-long staple (ELS) cotton. He also moderated a session on the future of ELS cotton in context to consumption in India. Thomas Gladtke, director of Textile and Apparel Sales at Applied DNA Sciences Lab, presented "Fiber Typing Technology" to fuel dialogue on supply chain identification's emergence. Dr. K. Selvaraju, secretary general of the Southern India Mills Assoc., addressed the importance of cotton to the Indian textile industry. Ashish Jhalani, a founding member of eTailing India, gave a presentation on the opportunities for retailing apparel online -- as new channels such as e-commerce are gaining momentum -- and how cotton products can find the appropriate channels to reach consumers.

 
Sales, Shipments Remain Steady

Net export sales for the week ending on Sept. 18 were 163,700 bales (480-lb). This brings total '14-15 sales to approximately 5.5 million bales. Total sales at the same point in the '13-14 marketing year were approximately 4.2 million bales. Total new crop ('15-16) sales are 422,800 bales.

Shipments for the week were 94,500 bales, bringing total exports to date to 720,600 bales, compared with the 1.3 million bales at the comparable point in the '13-14 marketing year.

 

 
Effective Sept. 26-Oct. 2, ’14

Adjusted World Price, SLM 11/16

 50.94 cents

*

Fine Count Adjustment ('13 Crop)

0.43 cents


Fine Count Adjustment ('14 Crop)

 0.33 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 1.06 cents


Import Quotas Open

13

 
Special Import Quota (480-lb bales)

880,211


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 
Five-Day Average

Current 5 Lowest 3135 CFR Far East

70.63 cents


Forward 5 Lowest 3135 CFR Far East

NA


Coarse Count CFR Far East

NA


Current US CFR Far East

73.00 cents


Forward US CFR Far East

NA


 

'13-14 Weighted Marketing-Year Average Farm Price  
Year-to-Date (Aug.-July)

77.15  cents

**


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