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February 5, 2016
 

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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
 
 


 
NCC Disappointed Over Cottonseed Comments

In a statement, the NCC said it was  extremely disappointed in Agriculture Secretary Vilsack's comments that USDA believes its legal interpretation of the farm bill does not provide the authority to make the designation of cottonseed as an 'other oilseed.'

The statement emphasized that the NCC continues to believe, like a broad group of Congressional Members, that USDA clearly has this authority as described in the current farm bill – and the industry remains committed to pursuing a cottonseed designation and policy to help provide long-term stability to the industry.

Secretary Vilsack formally responded to NCC and Members of Congress regarding the request for cottonseed designation as an 'other oilseed.' Chairman Conaway (R-TX) and a number of Congressional Members responded with their disappointment to the decision and continued to urge USDA to take action to help provide stability to the cotton industry. Conaway's statement is at http://agriculture.house.gov/news/documentsingle.aspx?DocumentID=3121.

Other farm groups also expressed their disappointment, including the National Farmers Union's statement at www.nfu.org/nfu-comments-on-usda-cottonseed-announcement/4142 and the American Farm Bureau Federation's statement in which AFBF President Zippy Duvall said, "The American Farm Bureau Federation is seriously disappointed that the Agriculture Department has determined Sec. Vilsack does not have the legal authority to administratively declare cottonseed as an oilseed, thus making it eligible for farm program benefits. A lot of cotton farmers are hurting across our nation. The AFBF Board voted to support an administrative declaration by Sec. Vilsack, in hopes of softening some of the economic pain our cotton producers are feeling. While we are disappointed in the USDA ruling, AFBF stands ready to work with leadership of the House and Senate Agriculture Committees and other congressional ag leaders to explore ways to overcome the legal barriers USDA has cited. Cottonseed should be granted that designation and, short of reopening the farm bill, we will work to ensure that all possibilities are fully explored."

The NCC's statement did extend appreciation to the Secretary for his recognition of the industry's growing need for assistance given the current economic circumstancesand his willingness to explore ways of providing meaningful and timely assistance to the industry. The statement noted that with the lowest US cotton acreage in more than 30 years, the smallest exports in 15 years and cotton prices at their lowest level since the '09 recession, economic pressure is mounting in the industry. Meanwhile, cotton demand, 10% below the peak observed in '06, is struggling due to increased competition from synthetic fibers, and foreign governments' support for international cotton production is increasing.

Given the current economic climate, the NCC said it will continue working with Congress and USDA to find ways to help address the significant challenges facing the US cotton industry.

 
NCC Praises Efforts to Reinstate Certificates

Following USDA's announcement of the implementation and availability of commodity marketing certificates as part of the Marketing Loan Program (MLP) available to all loan eligible commodities, the NCC issued a statement saying that on behalf of the US cotton industry, it strongly commends House Agriculture Appropriations Subcommittee Chairman Aderholt (R-AL), House Agriculture Committee Chairman Conaway (R-TX), Senate Appropriations Committee Chairman Cochran (R-MS) and Senate Agriculture Appropriations Subcommittee Chairman Moran (R-KS) for all of their efforts to ensure this provision was included in the FY16 Agriculture Appropriations bill, providing USDA the authority to again make available marketing certificates for the redemption of loan commodities.

The NCC also thanked Agriculture Secretary Vilsack and his team at USDA that have worked since late December to develop the necessary regulations and provisions to implement this critically important provision. The cotton industry is encouraged to see this functionality and effectiveness restored to the MLP.

The statement noted that there has been a long history of certificates being available as part of the MLP to ensure the program functions as intended, allowing commodities to continue to flow to the marketplace and end users, and to prevent the forfeiture of commodities to USDA. In periods of depressed commodity prices, the MLP cannot function as intended to provide a minimum level of price stability to producers.

 
Budget Views/Estimates Letter Approved

The House Agriculture Committee approved its FY17 Budget Views and Estimates Letter, which was sent to the House Budget Committee. This represents the beginning of this year's budget and appropriations process in the House.

The letter, on the NCC's website at www.cotton.org/issues/2016/upload/17housebudvw.pdf, contains the Agriculture Committee's recommendations with respect to the development of this year's Congressional budget resolution, which also sets spending levels for the annual appropriations process.

The Committee notes that the '14 farm law only represents 2% of the total federal budget, and support to producers through the Commodity Title and Crop Insurance is only 0.29% of the overall federal budget. The '14 farm law provided more than $20 billion in savings.

The Committee also stated that "… it is important not to gloss over the current difficult economic conditions in farm country, especially in parts of the country that have faced both sharply lower crop prices and natural disasters. A good many farmers are struggling to demonstrate to lenders that they can cash-flow in order to secure credit and farm for another year. Nowhere is this more evident than among U.S. cotton farmers.

"As the Committee learned through several hearings over the past year, while the U.S. worked to reform domestic cotton policy, bringing it into conformance with our international obligations, China and India the world's largest cotton producing nations were busy increasing domestic support to record levels in what many believe to be in direct violation of their WTO commitments. As a result, while all parts of the agricultural economy are facing significant stress, U.S. cotton farmers are in serious jeopardy. As farmers continue to work through these issues, both economic and policy, it is important that Congress not harmfully change the rules of the 5-year farm bill. It is equally important for the Administration to use all of the tools at its disposal to help farmers mitigate the tremendous risks they face."

 
CCI Elects '16 Officers

Keith T. Lucas, Garner, NC, cooperative official, will serve as president of Cotton Council International (CCI) for '16. He and other CCI officers were elected at CCI's board meeting during the NCC's Annual Meeting in Dallas.

"The cotton industry is operating in an uncertain environment, with international policies and the ongoing challenge from man-made fiber affecting cotton consumption," Lucas said. "CCI's COTTON USA promotion efforts take on even greater importance this year, as consumer demand and exports continue to be critical to maintaining U.S. cotton's profitability. I'm excited to lead CCI as its president and support its global initiatives aimed at instilling a preference for U.S. cotton and cotton products at every point along the marketing chain."

Lucas, who moves up from CCI first vice president, succeeds Dahlen Hancock, a Ropesville, TX, producer, who becomes CCI board chairman. A South Alabama native, Lucas attended Auburn U. where he earned a BS degree in Business Administration in '85. He joined Carolinas Cotton Growers Cooperative in '01, serving as vice president of marketing. He is responsible for all of its member-grower relations including forward contracting, spot purchases and managing the day-to-day operations of cotton services.

Lucas has been active in industry organizations including current service as chairman of the NCC's Public Relations and International Market Development Committee and as a member of the NCC's Quality Task Force. He is a past member of the NCC's Joint Cotton Industry Bale Packaging Committee. He has served in multiple leadership positions with CCI and currently is a member of CCI's Export Promotion Committee.

Other '16 CCI officers elected include: first vice president, Eduardo L. Esteve, Jr., merchant, Dallas, TX; second vice president, Ted Schneider, producer, Lake Providence, LA; and treasurer, Hank Reichle, cooperative, Greenwood, MS. In addition, Gary Adams, Cordova, TN, was elected as secretary and Bruce Atherley, Washington, DC, was elected as assistant secretary.

Elected as '16 CCI directors were: Jarral T. Neeper, a cooperative official from Bakersfield, CA; Carlos C. Garcia, a cooperative official from Lubbock, TX; Davis Warlick, a manufacturer from Charlotte, NC; James L. Loeb, Jr., a merchant from Montgomery, AL; and Richard Gaona, a producer from Roby, TX.

Re-elected as '16 CCI directors were: Producers – J. Lee Cromley, Brooklet, GA; Craig A. Heinrich, Lubbock, TX; Richard Kelley, Burlison, TN; Cannon Michael, Los Banos, CA; Taylor Slade, Williamston, NC; and Gregory C. (Greg) Wuertz, Casa Grande, AZ; Ginners – Thomas S. (Sid) Brough, Odem, TX; and Kent D. Fountain, Surrency, GA; Merchants – E. Hope (Hopie) Brooks, III, and Steven (Steve) Dyer, both of Cordova, TN; Philip R. (Phil) Bogel, II, Dallas, TX; and Ernst D. (Ernie) Schroeder, Jr., Bakersfield, CA; Cooperative Official – Frederick Barrier, Greenwood, MS; Cottonseed Handler – James C. Massey, Harlingen, TX; Warehouser – Vance C. Shoaf, Milan, TN; and Manufacturer – Robin Perkins, Sanford, NC.

 
Sales, Shipments Strong

Net export sales for the week ending on Jan. 28 were 270,300 bales (480-lb). This brings total '15-16 sales to approximately 6.3 million bales. Total sales at the same point in the '14-15 marketing year were approximately 9.9 million bales. Total new crop ('16-17) sales are 859,900 bales.

Shipments for the week were 252,000 bales – a marketing-year high, bringing total exports to date to 3.2 million bales, compared with the 3.7 million bales at the comparable point in the '14-15 marketing year.

 

 
Effective Feb. 5-11, ’16

Adjusted World Price, SLM 11/16

 46.85 cents

*

Fine Count Adjustment ('14 Crop)

0.13 cents


Fine Count Adjustment ('15 Crop)

 0.08 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 5.15 cents


Import Quotas Open

13

 
Special Import Quota (480-lb bales)

901,358


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 
Five-Day Average

Current 5 Lowest 13/32 CFR Far East

66.60 cents


Forward 5 Lowest 13/32 CFR Far East

NA


Fine Count CFR Far East

 68.42 cents

 
Coarse Count CFR Far East

67.03 cents


Current US 13/32 CFR Far East

 70.25 cents


Forward US 13/32 CFR Far East

NA