CURRENT ISSUE ARTICLES

Mid-Year Meeting Room Reservation Deadline Near

USDA Announces New Costs-to-Market Adjustment

Crop Condition Ahead of 2023 Rating

Export Sales for Week Ending July 11

Capital Calendar

 

Mid-Year Meeting Room Reservation Deadline Near
 
NCC officers, directors, and advisors attending the NCC's 2024 Board of Directors Mid-Year Meeting on August 21-23 at the Peabody Memphis Hotel in Memphis, Tennessee, should make hotel reservations by Wednesday, July 24. Attendees can make room reservations either online at https://bit.ly/3Xr95X9 or by calling the hotel’s reservation department at 1-800-PEABODY and refer to group name National Cotton Council Board Meeting.
 
Attendees who haven’t done so, also should log in and register at https://www.cotton.org/news/meetings/2024midyear/index.cfm. The form will be pre-filled, so click the “Submit Registration” button at the bottom. Registrants will receive an email confirmation. Meeting schedule information also is available via that link.
 
For air travel assistance, contact Peggy Robinson, the NCC's travel consultant at 901-762-7017 direct or probinson@travelennium.com.

USDA Announces New Costs-to-Market Adjustment

USDA’s Farm Service Agency (FSA) announced the value of the Costs-to-Market Adjustment that will be incorporated into the August 8 release of the Adjusted World Price (AWP). The first AWP calculated using the 2024/25 cost-to-market adjustment will be published on August 8, 2024 at 4:00 p.m., Eastern Time, and will apply to the week of August 9-16, 2024.

FSA’s announcement at https://bit.ly/4f9Ajrp noted that based on the industry survey, the new rate will be 20.55 cents per pound — which is down 1.27 cents from the current adjustment of 21.82 cents. The current adjustment remains in effect until the August 8 announcement.

FSA distributes to merchandising firms the annual survey of cotton’s average costs-to-market. The survey measures the various costs, by specific categories, of landing upland and/or extra-long staple (ELS) cotton to Far East destinations from U.S. warehouses. The survey results are used in the determination of the upland cotton AWP that determines marketing assistance loan program benefits and potential payments under the ELS competitiveness program.
 

Crop Condition Ahead of 2023 Rating
 
According to USDA, current U.S. cotton crop conditions are slightly better than at the same time last year. While the percent of the crop rated good or better is the same as in 2023, just 23% of this year’s crop is rated poor or very poor, as compared to 28% as of mid-July last year.
 
However, stark differences emerge at the state level. Texas and Kansas report more favorable crop conditions than in 2023, while dry conditions in the Carolinas and Virginia have contributed to sharply lower ratings than last year’s crop.
 
Complete state-by-state information is on the NCC's website at www.cotton.org/econ/cropinfo/progress.cfm.

Export Sales for Week Ending July 11
 
Net export sales for the week ending July 11, 2024 were 31,900 bales (480-lb.) – a marketing-year low. This brings total ‘23-24 sales to approximately 13.8 million. Total sales at the same point in the ‘22-23 marketing year were approximately 14.7 million bales. Total new crop (‘24-25) sales are 2.5 million bales (480-lb.). Shipments for the week were 120,900 bales, bringing total exports to date to 10.7 million bales, compared with the 11.8 million bales at the comparable point in the ‘22-23 marketing year.
 
With less than one month remaining in the marketing year, weekly shipments must average roughly 301,400 bales to reach the USDA projection of 11.6 million bales.
 

Capital Calendar

The House and Senate were in recess.
 
Next Week
 
July 22
 
The House convenes.
 
July 23
 
The Senate convenes.
 
The House Agriculture Committee will hold a hearing, “Financial Conditions in Farm Country.” More information and a link to view the hearing are at https://bit.ly/4bYj1eo.

July 25

The House Agriculture Committee will hold a hearing, “Reauthorizing the CFTC: Stakeholder Perspectives.” More information and a link to view the hearing are at https://bit.ly/3Y5xNN1.