WEEKLY COTTONSEED CRUSHINGS STILL TRENDING HIGHER

COTTONSEED OIL A KEY INGREDIENT IN GROWING KOSHER FOOD MARKET

DID YOU KNOW??

WHAT'S NEW @ COTTONSEED.COM

CONVENTION NEWS & NOTES: MAKE HOTEL RESERVATIONS BY APRIL 1

MONTHLY SUMMARY OF US COTTONSEED CRUSHINGS & STOCKS

CONSULTANT REPORTS ON MEXICO

MOVING?

WEEKLY COTTONSEED CRUSHINGS STILL TRENDING HIGHER - Cottonseed crushings for the 2007-08 season are still trending above year ago levels, according to the Association’s latest survey of member mills. For the week ending March 23, weekly crushings totaled 56,267, bringing the year-to-date total to 1.82 million tons. For the same number of weekly reporting periods a year ago (34 reporting periods), year-to-date crushings stood at 1.76 million tons and ended the season at 2.68 million tons. This season’s year-to-date total has held steady at between 3.3% to 4.0% above last season. See the chart on page 4 or the Statistics section of the NCPA web site for complete details…..In spite of this year’s smaller crop, stocks of cottonseed at oil mills stands at 1.854 million tons at the end of February compared to 1.788 million tons in February 2007. NCPA’s monthly survey of oil mills also shows February’s ending stocks of cottonseed meal at 22,851 tons vs 21,467 at the end of January and 10,725 tons a year ago. Ending hulls stocks for February were 39,706 vs 39,025 at the end of January and 37,570 at the end of February 2007. Complete details of the February report are available in the Members Only section of the web page, as well as other cottonseed data.

COTTONSEED OIL A KEY INGREDIENT IN GROWING KOSHER FOOD MARKET - Long deemed a kosher vegetable oil by the Jewish community, cottonseed oil will play an increasing role in helping food manufacturers deliver kosher foods to an even wider audience, experts say. “It has been estimated that more than 40 percent of the retail foodstuffs sold nationally in the United States enjoys a kosher certification,” says Rabbi Zushe Blech, the author of Kosher Food Production and administrator of EarthKosher Kosher Certification Services. “This figure continues to grow, aided by the ready availability of kosher raw materials, such as kosher cottonseed oil.” Menachem Lubinsky, president of Lubicom Marketing Consulting, and editor-in-chief of KosherToday.com, a trade publication for the kosher food industry, notes that kosher-certified products are becoming increasingly popular with the mainstream consumer. “Kosher represents quality and safety,” he says. “More than 11 million consumers buy kosher products in the United States, and that number is growing annually by 15 percent.” Rabbi Blech notes that cottonseed oil offers several direct advantages in the kosher market. “First, it is a domestic oil, and is not subject to the potential significant kosher issues relating to the shipment of tropical oils that also may transport animal fats,” he says. “Second, most opinions approve its use for Passover, a status not enjoyed by soy, corn, and canola oils.” Cottonseed oil contains no animal byproducts and originates from the cotton seed rather than one of the five grains that are forbidden during Passover (oats, wheat, barley, rye and spelt). According to the NCPA, “We’re seeing an increased interest in cottonseed oil not only as a kosher food, but as a healthy, trans-free ingredient for food manufacturing and the foodservice industry. Because of its natural stability, cottonseed oil does not require hydrogenation – the process that produces artificial trans fats.” To earn official kosher certification, explains Scott Middleton of Delta Oil Mill in Jonestown, Miss., many cottonseed oil mills are supervised by rabbis affiliated with a certification organization like the Orthodox Union, the largest and most well known of the nearly 900 agencies and individuals certifying kosher products. “A rabbi tours our facility and carefully checks the storage tanks to be sure no outside materials have come in contact with the oil manufacturing process,” he says. Adds John Fricke of Planters Cottonseed Mill in Pine Bluff, Ark., which produces 100 million pounds of cottonseed oil each year, says most oil mills turning out kosher oil, do so exclusively. “Kosher consumers want kosher oil, and non-Kosher consumers are reassured with the safety and quality of the oil that is kosher,” he said. “It’s a win-win.”

DID YOU KNOW?? * More than 40% of the retail foodstuffs sold nationally in the United States enjoys a kosher certification. * More than 11 million consumers buy kosher products in the United States, and that number is growing annually by 15%. * While 21% of Americans buy kosher foods, 55% of America’s kosher food consumers buy kosher food because they believe in its health benefits. * Because cottonseed oil contains no animal byproducts and originates from the cotton seed rather than one of the five grains that are forbidden during Passover (oats, wheat, barley, rye and spelt), cottonseed oil is approved for use during Passover, a status not enjoyed by soy, corn, and canola oils.

WHAT'S NEW @ COTTONSEED.COM - NCPA’s latest survey of member mills showed cottonseed crushings for the month of February at 264,606 tons, compared to 270,543 in January and 223,774 in February a year ago. See the Statistics section for complete details, as well as up-to-date data for weekly crushings…..NCPA’s Mexico Consultant, Ricardo Silva, provides an update on Mexican cotton production in his February report. Follow the link in the Members Only section for his most recent report…..Convention news and updates are posted to the Convention section of the web site. Be sure to check for news, registrations, and other updates. Make your hotel reservations ASAP!

CONVENTION NEWS & NOTES: MAKE HOTEL RESERVATIONS BY APRIL 1 - Time is running short for making plans to attend NCPA’s 112th Annual Convention—May 3-6, 2008 at the Hilton Sandestin Beach Golf Resort & Spa. Call the toll free number for reservations at 1-800-367-1271 by APRIL 1. Be sure to mention NCPA’s group code of “NCP”….. John Baize, Baize & Associates, will review supply and demand factors impacting the US vegetable oil industry during the Monday business session. In addition, NCPA will welcome Dr. Dermot Hayes, professor of economics & finance at Iowa State University. Dr. Hayes has done extensive research on the economic impact of DDG’s and will discuss their impact on U.S. grain, oilseed and livestock markets….Registration materials are NOW available under the Convention link on the Association web site. Be sure to take advantage of the money-saving early registration period! New this year—Deep Sea Fishing adventure!!

MONTHLY SUMMARY OF US COTTONSEED CRUSHINGS & STOCKS

CONSULTANT REPORTS ON MEXICO - Dry conditions remain in the northern states of Mexico. Rain is expected to improve conditions during the month of March. According to the Union Ganadera (Cattle Association) of Tamaulipas (northern Mexican state that borders with Texas and the Gulf of Mexico), they will again ask for economic assistance from the Mexican government in order to buy feed supplements. The drought has extended and now pasture sh have recently been impacted by a frost. The Union represents nearly 40,000 animals under cow-calf producing systems. Similar economic supports have been provided to other states, such as Coahuila, when drought conditions become such a negative factor in range conditions. A protein supplement commonly used under these conditions is US cottonseed meal….In a short trial reported by Desarrollo Rural of Saltillo, goats were supplemented with US cottonseed meal as their main protein source, and under semi-range conditions, a 70% increase in milk production was observed over a seven week period. The research will be presented at the next International Goat Association (IGA) Congress, to be held from August 31 to September 5 of this year in Queretaro, Mexico. NCPA has accepted an invitation to attend…..The Union Ganadera of Chihuahua and Nuplen-LALA have been inquiring for US cottonseed meal and appears they will be buying in the near future. They both represent a potential market of about 20,000 metric tons for US cottonseed meal per year…..Panama again this past month, through the Larro Company, has also inquired for US cottonseed meal and pelleted cottonseed. …..Inquiries have also been received from feedlot managers from the state of Sinaloa, a major Mexican feedlot producing area, for cottonseed meal…...According to Fernando Novoa of the Confederation of cotton growers of Mexico, experiments in changing the planting season of cotton in the state of Sinaloa to June and July with a harvest in December have gotten good results. This could stimulate cotton planting in the future in Sinaloa. The objective of the research has been to reduce rain damage and plague risks normally occurring in a normal planting season in the area. For the cycle 2008-09 Sinaloa is not planting cotton. Similar planting experiments could also be held in the state of Sonora. The confederation released estimates for Mexican cotton production for 2008-09 and are available in the Members Only section of the NCPA web site under “Mexico Consultant Reports.”

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 866 Willow Tree Circle, Cordova, TN  38018, or email to info@cottonseed.com.

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© National Cottonseed Products Association, Inc.

March 25, 2008