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February 23, 2024
 

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PAST ISSUES/ARCHIVES
 
Cotton's Week: April 5, 2024
Cotton's Week: March 22, 2024
Cotton's Week: March 15, 2024
 
 


 

Members of Congress Weigh In on Dicamba

Nearly 50 Members of Congress signed separate House and Senate letters to Environmental Protection Agency (EPA) Administrator Michael Regan expressing concern about the February 6 federal court decision vacating the registrations of three dicamba products used widely in the cotton industry.

Both the House and Senate letters, at bit.ly/3wtbjd7 and bit.ly/3T8ZGAM, express appreciation for Regan’s efforts to allow producers to continue to use existing stocks of dicamba products while also urging him to appeal the federal court’s decision. The House letter was led by Mark Alford (R-MO) and Don Davis (D-NC), while the Senate letter was led by Roger Marshall (R-KS).

The NCC sent a letter of its own at www.cotton.org/issues/2024/24dcmlet to Regan shortly after the court decision, as did numerous state and regional cotton organizations. Regan has not yet announced whether EPA will appeal the February 6 court decision.

 

Farm Bill To Receive Major NCC Focus

Outgoing NCC Chairman Shawn Holladay told 2024 NCC Annual Meeting delegates that farm bill development will be the NCC’s main priority again this year. 

A challenging environment from a budget perspective is anticipated, Holladay said, and noted that there will be dozens of new Members of Congress needing education on industry issues and priorities.

The Texas producer said critical to the U.S. cotton industry’s overall profitability will be NCC’s action on multiple trade issues, including preserving important trading partner relationships and remaining proactive on several initiatives aimed at elevating U.S. cotton’s global reputation.
 
Among additional NCC priorities for the coming year are continuing supportive actions for: 1) addressing supply chain logistics affecting both exports and the availability and cost of crop protection inputs; 2) preserving the industry’s status as a timely mover of quality U.S. cotton to customers worldwide, including closely monitoring lint contamination which is negatively affecting the industry’s economic health; 3) carrying out actions aimed at maintaining key crop protection products and technologies; and 4) promoting the work of the U.S. Cotton Trust Protocol.
 
Holladay said that widespread participation by producers in the Trust Protocol will serve as a catalyst to drive the continuous improvements necessary to help the industry achieve the 10-year goals for key environmental indicators and assure the textile supply chain that U.S. cotton is sustainable. He reported that work has begun on the USDA-funded, $90 million climate-smart pilot project in which the Trust Protocol is the lead partner seeking to enroll more than 1,600 farmers.
 
Holladay reported that NCC member participation reached an all-time high of 84% for the 2022 crop. He emphasized that with strong industry participation in the NCC, he is confident of the NCC’s ability to meet this year’s challenges.
 
His report also included a video of the NCC’s key 2023 activities. NCC members can access that video and activity details in the NCC's 2024 Report to Members at https://bit.ly/49Jqj4L. The NCC’s U.S. cotton's leaders for 2024 are at https://bit.ly/49NYHeZ.
 
Dr. Jody Campiche, the NCC’s vice president Economics & Policy Analysis, told delegates that given significant uncertainty in the global economy, this past year can be characterized as a year when an anticipated recovery in cotton demand has been slow to materialize. Weak demand has translated to pressures throughout the supply chain.  
 
Campiche noted that the current economic projections for the U.S. and global economies should be viewed with caution given the continued impacts of tighter monetary policy, high interest rates, and geopolitical tensions. 
 
In her analysis of the NCC Annual Planting Intentions survey results, Campiche said the NCC projects 2024 U.S. cotton acreage to be 9.8 million acres, 3.7 percent less than 2023. Growers are facing difficult planting decisions as current prices fall short of production costs for many producers.   

Using ten-year average abandonment rates along with a few state-level adjustments to account for current moisture conditions, Cotton Belt harvested area totals 8.1 million acres for 2024 with a U.S. abandonment rate of 17.9 percent. Using the five-year average yield for the Southeast and the Midsouth and the 10-year average yield for the Southwest and the West generates a cotton crop of 14.6 million bales, with 14.0 million upland bales and 538,000 ELS bales.  

More details are on the NCC’s website at https://bit.ly/3I8OOwt and in the Cotton Economic Outlook at www.cotton.org/econ/reports/annual-outlook.cfm.  

 

Comments on Voluntary Carbon Markets Relayed

The Food and Agriculture Climate Alliance (FACA), of which the NCC is a member, submitted comments to the Commodity Futures Trading Commission (CFTC) related to the agency’s proposed guidance on the trading of voluntary carbon credit derivative contracts.

While recognizing voluntary carbon markets as a “promising tool” for reducing greenhouse gas emissions, the comments at www.cotton.org/24carbonlet.pdf point to currently low rates of producer participation attributed to high upfront costs, record-keeping burdens, and lack of awareness, among other factors. 

For voluntary carbon markets to operate more effectively, FACA urges the CFTC to ensure that contract terms are more transparent and that credits are subject to more stringent accounting. Additionally, FACA calls on the CFTC to continue to engage with rural stakeholders and to more closely work with USDA and other government agencies.  
 

 

NCC Backs Renomination of FMC Commissioner Bentzel

The NCC joined dozens of agriculture organizations on a letter at https://bit.ly/3OS46JQ to President Biden supporting Carl Bentzel’s renomination to serve another term at the Federal Maritime Commission (FMC).

The letter applauds Bentzel, who has served as an FMC commissioner since 2019, for addressing supply chain challenges and bringing better data collection to the shipping industry. It also argues that the FMC would benefit from the consistency a new term for Bentzel could provide as the Commission works on implementing the Ocean Shipping Reform Act.   

 

Growers Reminded to Upload Bales by March 1 to Receive Level 1 Payment

Growers currently enrolled in the U.S. Cotton Trust Protocol and participating in Level 1 of the Climate Smart Cotton Program are reminded to upload their 2023 bales by March 1 in order to receive payment.

The Climate Smart Cotton program began less than one year ago and already has approved applications for 778 farming entities of the 1,650 available. To date, close to $1.5 million in payments have been made to growers, with more planned before March 30.

For assistance with uploading bales ahead of the March 1 deadline, growers are encouraged to reach out to their gin. For more details growers should visit TrustUSCotton.org and for questions email info@trustuscotton.org.

 

Bale Packaging Meeting Registration Underway

Attendees may now register for the 2024 Joint Cotton Industry Bale Packaging Committee (JCIBPC) Annual Meeting, set for Wednesday, February 28. Pre-registration is strongly encouraged by completing and submitting the on-line form located at https://www.cotton.org/tech/bale/jcibpc-registration-form.cfm. Pre-registration has been extended to Monday, February 26.

The meeting will be held at the DoubleTree by Hilton Memphis (5069 Sanderlin Avenue, Memphis TN 38117). On-site badge pickup/registration will open at 11:00 a.m. The first general session will be held from 1:00-3:00 p.m. The executive session is scheduled for 3:15-4:00 p.m. Review of requests for experimental test programs and product approvals will take place during the executive session. The JCIBPC’s actions on requests will be announced during a short second general session following a brief recess at the conclusion of the executive session.
 

 

Sales Slip, Shipments Stay Steady

Net export sales for the week ending February 15, 2024 were 137,900 bales (480-lb.).  This brings total ‘23-24 sales to approximately 11.0 million. Total sales at the same point in the ‘22-23 marketing year were approximately 10.8 million bales. Total new crop (‘24-25) sales are 836,500 bales (480-lb.). 

Shipments for the week were 266,400 bales, bringing total exports to date to 5.4 million bales, compared with the 5.4 million bales at the comparable point in the ‘22-23 marketing year.

 

Capital Calendar

The House and Senate were in recess.


Next Week


February 26

The Senate convenes.


February 28

The House convenes.
 

 

 
Effective February 23-29, 2024

 

Adjusted World Price, SLM 11/16 75.12 cents *
Fine Count Adjustment ('22 Crop) 1.36 cents  
Fine Count Adjustment ('23 Crop) 1.61 cents  
Coarse Count Adjustment 0.00 cents  
Marketing Loan Gain Value 0.00 cents  
Import Quotas Open 13  
Special Import Quota (480-lb. bales) 406,868  
ELS Payment Rate 0.00 cents  
*No Adjustment Made Under Step I  
     
Five-Day Average  
Current 5 Lowest 13/32 CFR Far East 99.39cents  
Forward 5 Lowest 13/32 CFR Far East  NA
Fine Count CFR Far East 100.23 cents  
Coarse Count CFR Far East 103.71 cents  
Current US 13/32 CFR Far East 104.15 cents  
Forward US 13/32 CFR Far East NA