ABSTRACT
Four major factors that affect cottonseed value are: cottonseed product value, quality of the seed, competition of oil mills, and the feed market. The value of the seed, whether used in crushing or feeding, is determined by the quality of the seed based on nutrient and oil content. Seed quality has had a tremendous impact on what the producer has received for his seed this season. Cottonseed product value determines the amount the oil mill can pay for seed. The product value establishes the floor for the price of cottonseed; whereas the feed industry usually sets a price that will attempt to lure seed away from the oil mill. However, the price that the feed industry can afford to pay is based on other mid-proteins and coarse grains. The amount of cottonseed moving into the feed market has followed an increasing trend over the past ten years. The reduced supplies of seed in some areas has been a factor in the closing of oil mills thus reducing competition for seed in some local areas. It is interesting to note that over this same time period, price paid to the producer for cottonseed has also followed a declining trend. Other factors do exist and can sometimes have a significant affect on the market for cottonseed. Cottonseed product value, seed quality, competition of oil mills, the feed market, and other factors not always apparent are important factors that affect the value of cottonseed. The markets for cottonseed and cottonseed products are very competitive and are dependent on a wide range of factors.
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