PCG EMAIL SERVICES: COTTON NEWS from Plains Cotton Growers, Inc. - April 26, 2013

PCG Email Services pcg_email_service at plainscotton.org
Fri Apr 26 17:52:47 CDT 2013

            "COTTON NEWS" from Plains Cotton Growers, Inc. 
   4517 West Loop 289         Lubbock, Texas 79414          806-792-4904 


Friday, April 26, 2013           By Shawn Wade

  The United States Department of Agriculture Farm Service Agency released
the 2013-crop Upland Cotton Loan Premium and Discount tables on April 15
and it appears that there have been some positive changes from the 2012
tables. The 2013 table can be found at 
  Most of the adjustments to the 2013 table of premiums and discounts were
confined to the upper right quadrant of the loan chart and continues the
trend of recent years of higher quality cotton gaining value compared to
cotton of lower quality that is discounted more each year.
  Most of the positive changes for 2013 occurred in cotton Staple length 34
or greater in the White and Light Spotted Color grades (Color grades 11-71
and 12-62, respectively) with Leaf grade 5 or better. Cotton within this
range generally will see higher loan values with premiums increasing 0-25
  Almost all of the changes for cotton Staple length 34 and shorter resulted
in larger discounts that ranged from 20 to 40 points. It bears noting that
cotton with staples lengths below an inch were hit hardest with additional
discounts ranging from 80 to 115 compared to the previous year.
Changes in the 2013 premiums and discounts for Bark and Extraneous matter,
Micronaire, Strength, and Length Uniformity were somewhat mixed. 
  The most noticeable change in this section of the loan table is slightly
lower discounts for Micronaire readings below 3.5. The only discounts that
increased in the Micronaire table were for Micronaire range 5.0 to 5.2,
which increased by 40 points to -270 points, and the highest Micronaire
group (5.3 and above), which increased 45 points to -385 points per pound.
Lower discounts for low Micronaire cotton ranged from 5 to 40 points.
  Strength discounts were lowered 15 to 70 points for values below 25 grams
per tex (g/tex), but that change was largely offset by smaller premiums
for strength measurements above 30 g/tex.
  The table at http://www.plainscotton.org/mj/13UpCotLC.pdf
provides comparisons between 2012 and 2013 loan values for
White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and
  Complete 2013 Loan Premium and Discount tables and loan charts with
calculated values based on the 2013 schedule of premiums and discounts
is posted on the Plains Cotton Growers website at http://www.plainscotton.org.

"Cotton News" is a weekly publication of Plains Cotton Growers, Inc.
For additional information contact PCG at 806-792-4904

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