FY 2006 BUDGET DRAWS AG INTEREST

2005 COTTON PLANTINGS ESTIMATED HIGHER VS 2004

WHAT'S NEW @ COTTONSEED.COM

WEEKLY COTTONSEED CRUSH

2004-05 NCPA TRADING RULES BOOK

COTTONSEED PROCESSING INDUSTRY STATISTICAL DATABASE

MONTHLY SUMMARY OF COTTONSEED CRUSHING & STOCKS

AND IT'S GOOD FOR YOU...

MOVING?

FY 2006 BUDGET DRAWS AG INTEREST - A major topic in Washington and elsewhere in ag circles is President’s Bush’s  FY 2006 budget.  Of concern is the administration’s plan to cut farmers’ federal payments and other agriculture supports by more than a half-billion dollars next year, a plan already drawing warnings from Congress. Producers could see payments drop if the ceiling on those payments, now set at $360,000 annually, drops to $250,000.  The administration's goal is to cut the deficit, projected to rise to $427 billion this year, in half by 2009. Farm programs could be cut by at least $587 million next year and $5.7 billion over 10 years.  Currently, U.S. agriculture contributes about 15% to the national GDP but accounts for about 1/2 of 1% of the federal budget.  Producers and other ag groups have always recommended a more equitable solution be found for deficit fighting, such that all segments of the economy share in attempts to balance the federal budget.  Of specific interest for NCPA, funding for ’06 was included at the recommended level of $34 million for Foreign Market Development—a program the Association uses with Cotton Council International to promote US cottonseed meal and linter consumption overseas.

2005 COTTON PLANTINGS ESTIMATED HIGHER VS 2004 - A total of 13.73 million acres of cotton are expected to be planted this spring, up 0.6 percent from 2004, according to the National Cotton Council’s 22nd Annual Early Season Planting Intentions Survey. The NCC survey was mailed in mid-December of 2004 to about one-third of the producers across the 17-state Cotton Belt, and surveys were returned by mid-January.  The survey showed upland cotton planting intentions are 13.48 million acres, an increase of 0.5 percent from 2004 plantings of 13.41 million acres. Extra long staple (ELS) intentions of 255,000 acres represent a 2.3 percent increase from 2004. With average abandonment, total upland and ELS harvested area would be about 12.35 million acres. Applying each state’s trend yield to its 2005 projected harvested acres generates a crop of 18.86 million bales, 18.16 million bales of upland cotton and 691,000 bales of ELS cotton.  Cottonseed production for 2005 is projected at 6.85 million tons, down from 8.41 million last year.  Based on survey results, the Mid-South and Southwest regions show intended upland cotton planting increases of 6.8 percent and 0.5 percent, respectively. Decreases in upland cotton plantings were indicated for the West and Southeast, down 11.3 percent and 3.2 percent, respectively. According to the survey, Mid-South cotton plantings will expand at the expense of both soybeans and corn. The combination of lower corn/soybean prices, anticipated cost increases to address Asian soybean rust and favorable cotton yields appear to be the factors leading to the increased area. In the Southwest, the survey indicated Texas growers intend to plant roughly the same area as last year, 5.85 million acres. Oklahoma respondents suggest that growers intend to continue increasing acreage by 6.9 percent. After reducing planted acres last year, Kansas producers appear prepared to increase cotton acreage 11.9 percent in 2005. One reason for Southeast cotton plantings’ decrease in 2005 is the relative strength of peanut prices. Respondents from the Southeast also expressed intent to shift cotton acres to corn. Out West, growers in New Mexico intend to increase upland area by 15.1 percent to 78,000 acres while 10.7 and 14.7 percent decreases were indicated by Arizona and California survey respondents, respectively. (National Cotton Council,  1/28/2005)

WHAT'S NEW @ COTTONSEED.COM - Oil-Dri Corporation of America, Chicago, IL has resigned their membership in the Association…..Meeting season is fast approaching.  Check the Calendar link on NCPA’s web site to find a list of the latest industry meetings and events.  Of interest is the America Oil Chemists’ Society annual meeting in Salt Lake City, UT.  AOCS is planning a 5,000 sq. ft. museum in the Expo Hall saluting the pioneers of our industry, including a look at the industry associations around the world…..The 73rd Oil Mill Operator’s Short Course will be held March 13-15th in Omaha, NE. Details, including a program and registration form, are available in the What’s New link…..Potential sales leads for meal and cottonseed may be found in the Cottonseed Forum section of the web site. You may browse the messages at any time, but to post a message, you must log in.

WEEKLY COTTONSEED CRUSH - Cottonseed crushings for the week ending January 30 totaled 66,391 tons, down 0.7% from the previous week’s total of 66,865.  The past two weekly reporting periods have exceeded their five-year averages by a combined total of 7,952 tons.   It is the first time since mid-December 2004 that the current season’s crush has surpassed the five year average weekly for two consecutive periods.  Year-to-date crushings, based on weekly reports, stand at 1.41 million tons, compared to 1.32 million tons crushed to this point in the season a year ago and 1.32 million tons crushed in 2002/03.  As this is a little past the halfway mark in the 2004/05 season, forecasts of a 2.6 to 2.8 million ton crush appear reasonable.

2004-05 NCPA TRADING RULES BOOK - Copies of the 2004-05 Trading Rules book have been mailed to the membership.  For additional copies, please contact the NCPA office.

COTTONSEED PROCESSING INDUSTRY STATISTICAL DATABASE - The 2005 Statistical Database of the U.S. Cottonseed Processing Industry will be available soon from the NCPA.  Electronic copies will be available on the Association’s web site.  Printed copies will be available to member by request only.

MONTHLY SUMMARY OF COTTONSEED CRUSHING & STOCKS

AND IT'S GOOD FOR YOU... - Remember the original W.T. Rawleigh's “Antiseptic Salve”? The five-ounce tin has a picture of W.T. Rawleigh on the lid. Active ingredients in the salve are listed as: “turpentine and liquefied phenol combined in a base of petroleum, paraffin, and cottonseed oil.” Directions on the back say: “For superficial burns, scalds, blisters, bruises, cuts and wounds, sunburn, chapped, chafed and irritated skin. Carefully wash affected area with warm water. Apply antiseptic salve liberally twice each day. Antiseptic salve keeps the skin surface soft. Brings soothing, protective relief. See inside for animal use.” When you lift the lid on the can of salve, it reads: “For animals: For wounds, skin abrasions, minor cuts, chapped teats and udders, wire scratches and saddle chafing. Wash affected area and apply twice daily. Wash thoroughly teats and udders of treated cows before milking.” It was just a good old-fashioned, multi-purpose salve for animals and human beings - and it worked for them. In those days, many, many swore by Rawleigh salve as a great cure for many things - and there are many old-timers that still do. (Northwest Illinois Journal-Standard, 2/7/05)

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.

February 9, 2005