COTTONSEED CRUSH SLIGHTLY ABOVE AVERAGE - DECEMBER REPORT

COTTONSEED PRODUCTS EXPORT REPORT

WHAT'S NEW @ COTTONSEED.COM

CANADIAN BSE CASE REPORTED

NON-PROFIT OUTLOOK

TRENDS IN DINING - CEREAL CAFE

MOVING?

COTTONSEED CRUSH SLIGHTLY ABOVE AVERAGE - DECEMBER REPORT - NCPA’s just-released monthly report showed cottonseed crushings at 262,284 tons in December, ahead of the month’s five-year average of 259,387.  It is nearly equal to the 262,113 tons crushed in November and  well ahead of the 252,700 tons crushed in December a year ago.  While the crushing numbers do not necessarily point to a large crop, cottonseed receipts do.  Receipts of cottonseed by NCPA-member oil mills in December reached 618,000 tons, compared to 493,000 tons averaged over the last five years.  Year-to-date cottonseed receipts stand at 2.93 million tons, compared to 2.67 million tons a year ago at this time and 2.54 million tons two years ago…..Cottonseed meal stocks remain well above their norms, with stocks at oil mills standing at 74,080 tons at the end of December, albeit lower than the previous moth…..Hulls stocks jumped higher in December to 22,500 tons, compared to 15,755 tons the previous month.  The five-year average for December hull stocks is just under 29,500 tons…..Oil yields dipped a bit this month, from 316 lbs/ton crushed in November to 309 lbs/ton crushed in December…..Complete statistics for December, as well as complete monthly numbers are available in the Statistics section of the NCPA web site.

COTTONSEED PRODUCTS EXPORT REPORT - With the large cottonseed crop already filling most seed houses, strong cottonseed export sales are certainly no big surprise.  According to US Census data released this week, shipments of seed from the US were just over 67,000 metric tons for October and November—the first two months of the 2004-05 marketing season.  That is the second largest total over the past ten years (see chart on page 4 of this Newsletter) and lags behind the nearly 78,000 metric tons of seed exported in October-November 2002. Mexico and Korea account for the bulk of export shipments. Export sales for cottonseed, as detailed in the Cottonseed Export Sales page on the NCPA web-site, are nearly 50,000 metric tons of last seasons’ pace for the August 1—December 30 time frame…..Cottonseed meal export shipments in October and November have been above previous year’s levels.  Over 9,500 metric tons of meal were exported during the first two months of this season, compared to 4,700 mt during the same time frame last year and 4,800 mt two years ago. Mexico remains the largest customer, with sales to Europe continuing to gain strength….See page 3 of this Newsletter for more details, as well as the NCPA web site.

WHAT'S NEW @ COTTONSEED.COM - December’s monthly crush totals, as well as weekly crush numbers, are available in the Statistics section of the NCPA web site…..Weekly crushings during the holiday periods was down somewhat, but likely to jump as January’s totals have historically been among the highest during the season…..For the week ending January 2, cottonseed crushings topped 51,000 tons, compared to 52,370 the previous week…..Forecasts for state-by-state cottonseed production numbers were released by USDA this week and are available in the Statistics section of the NCPA web site.  The latest forecast calls for US cottonseed production to pass 8.4 million tons, 26% higher than the 6.67 million ton total of a year ago and 36% higher than the 6.2 million ton mark of 2002/03….Cottonseed oil specifications are available in the Publications section of www.cottonseed.com.

CANADIAN BSE CASE REPORTED - Canada announced this week a third case of Bovine Spongiform Encephalopathy (BSE) was found by the Canadian Food Inspection Agency.  Both the Canadian agency and USDA pointed to the current precautionary measures already in place that have prevented the spread of the disease in North America.  Officials note that it is not too surprising to find another case, especially in older animals, as the surveillance programs in Canada and the United States have been stepped-up dramatically. USDA and feed industry officials remarked that none of the cow entered the human food supply of animal feed system. Since January 2004, the U.S. Department of Agriculture has tested over 175,000 cows in the U.S.  This surveillance has resulted in only one confirmation of an imported BSE cow.  These figures support findings by the Harvard Center for Risk Analysis that the U.S. is highly resistant to the establishment of BSE.  The prestigious Center’s three-year study found in 2001 that government and industry measures in place were extremely effective in reducing the spread of BSE, even if sporadic cases are detected. Nevertheless, USDA was sending a team to Canada to evaluate the specific findings of this case.

NON-PROFIT OUTLOOK - While there has been some discussion within the non-profit sector of applying “Sarbanes-Oxley” provisions to nonprofits, outside of two provisions, the American Competitiveness and Corporate Accountability Act of 2002, also known as the Sarbanes-Oxley Act, is applicable only to publicly traded companies that are regulated by the Securities and Exchange Commission (SEC). However, the association community has noted increasing scrutiny of issues related to nonprofit governance. At its essence, the attention on nonprofit organizations from Congress, from regulators, from attorneys general at the state level, and from the media and general public, boils down to a desire to see nonprofits (particularly charities and foundations) safeguard against potential abuse and enhance their accountability in ways that ensure public trust. The association community believes there is sufficient cause for concern in the current agendas of the Senate Finance Committee, House Ways and Means Committee, the IRS, and in state attorneys general offices - all of which have shown interest in curbing real or perceived abuse in the nonprofit sector. Trade and professional groups are remaining vigilant to be sure they are not “painted with the same brush” in any proposed reforms. (Source: ASAE, 1/11/2005)

TRENDS IN DINING - CEREAL CAFE - The first freestanding Cereality Cereal Bar & Café has been open for just a month, but the creators of the concept are so convinced of its appeal that they have taken the first steps toward expanding the brand. David Roth, Cereality's chief executive and co-founder, said the two-unit company is moving its corporate headquarters to Chicago from Boulder, Colo., early this year and has plans to open at least 10 new stores in the next 15 months. Roth added that concurrent with the move to Chicago are plans to open a unit in the city's financial district. Cereality is a counter-service concept that offers customers a variety of cold and hot cereals along with home-made granolas and smoothie drinks in an environment inspired by the kitchen found in the sitcom “Seinfeld.” (Source: Nation’s Restaurant News, January 10, 2005)

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 104 Timber Creek Drive, Suite 200, Cordova, TN  38018, or email to info@cottonseed.com.

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© National Cottonseed Products Association, Inc.

January 12, 2005