PCG EMAIL SERVICES: COTTON NEWS from Plains Cotton Growers, Inc. - April 18, 2014
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Fri Apr 18 10:01:00 CDT 2014
COTTON NEWS from Plains Cotton Growers, Inc. - April 18, 2014
4517 West Loop 289 Lubbock, Texas 79414 806-792-4904
USDA ANNOUNCES 2014 COTTON
LOAN RATE DIFFERENTIALS
Tuesday, April 15, 2014 From the Farm Service Agency
The U.S. Department of Agriculture's Farm Service Agency recently
announced the 2014-crop loan rate differentials for upland and extra-long
staple cotton. The tables of these loan rate differentials are available
on the FSA website at http://go.usa.gov/2Vp.
The differentials, also referred to as loan rate premiums and
discounts, have been calculated based upon market valuations of various
cotton quality factors for the prior three years. This calculation
procedure is identical to that used in past years. The Commodity Credit
Corporation (CCC) adjusts cotton loan rates by these differentials so that
cotton loan values reflect the differences in market prices for color,
staple length, leaf, extraneous matter, micronaire, length uniformity and
The 2014-crop differential schedules are applied to loan rates of
52.00 cents per pound for the base grade of upland cotton and 79.77 cents
per pound for ELS cotton. The loan rate provided to an individual cotton
bale is based on the quality of each individual bale as determined by
Agricultural Marketing Service classing measurements.
Further program information is available from Tiffany Arthur at (202)
720-4284 or by e-mail at tiffany.arthur at wdc.usda.gov.
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PARTICIPANTS PRAISE COTTON USA BRAND
AND RETAILER LEADERSHIP SUMMIT
Friday, April 11, 2014 From Cotton Council International
Cotton Council International's first global COTTON USA Brand and
Retailer Leadership Summit in Berlin, Germany, brought together leaders
from top global brands, retailers and sourcing companies to examine the
latest developments in the apparel and home textile industry.
Attendees from Europe, Asia and North America said they were impressed
by the quality of the speakers, and 79 percent of the attendees agreed that
the event assured them that sourcing cotton and cotton-rich products is a
viable long-term business decision.
CCI tailored the event specifically for top decision-makers and
offered attendees an opportunity to engage with industry experts, trend
forecasters and supply-chain innovators on a wide variety of topics
ranging from global economic uncertainty and price volatility to increased
consumer social awareness and shopping habits, responsible sourcing and
Engaging speakers increased the audience's understanding of the
complexities and flow of raw material production, supply chain dynamics
and consumer marketing. Eighty-two percent of participants said that the
COTTON USA Brand and Retailer Leadership Summit provided "a better
understanding of the U.S. and global cotton markets" and the "complexity
of the cotton value chain" and that attending the conference clearly will
benefit their business.
The conference followed two former European Brand and Retailer
conferences in 2009 and 2011 and represented the start of a global brand
and retailer event to be held at different locations in the future, a new
area for the COTTON USA program.
(PCG EDITOR'S NOTE: Dahlen Hancock of Ropesville participated as a
presenter at this event.)
ONLINE PRICE BASIS TOOL AVAILABLE
FROM AGRILIFE EXTENSION
Wednesday, April 9, 2014 By Blair Fannin, AgriLife TODAY
It's not as flashy as watching contract futures prices trade from red
to green on the weekday exchange, but knowing the price basis for a
commodity is an important aspect of marketing for agricultural producers,
according to experts with the Texas A&M AgriLife Extension Service.
To help producers get a firm handle on price basis in a particular
region of Texas, AgriLife Extension has an online tool available at
http://basis.tamu.edu that lists the different price basis for corn,
cotton, sorghum, soybeans and wheat.
"Price basis is the difference between a cash price and the futures
price of a particular commodity on a given futures exchange," said Dr.
Mark Welch, AgriLife Extension grains economist in College Station, who
along with Emmy Williams, AgriLife Extension program specialist, College
Station, provide weekly commodity basis prices in different districts
"Producers need to be aware of basis," Welch said. "The futures price
that you might be seeing may or may not necessarily reflect the actual
local price you will receive. While the futures price might be up, the
local basis price might be weak."
Welch said price basis is part of the curriculum offered during the
annual Master Marketer program, for which the 2015 program is set to be
held in January in Amarillo.
"Basis is the pliers of your marketing toolbox," Welch said. "It
doesn't tell you everything, but basis conveys important information about
fundamental supply and demand. You can't do without it. You have to have
For more information about the Master Marketer program, visit
"Cotton News" is a weekly publication of Plains Cotton Growers, Inc.
For additional information contact PCG at 806-792-4904
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