COTTONSEED STOCKS HIGH; CRUSH REMAINS ON HURRIED PACE

COTTON ACREAGE HIGHER THAN 2004, AG OFFICIALS SAY

WHAT'S NEW @ COTTONSEED.COM

CHANGE OF ADDRESSES NEEDED

AG SECRETARY JOHANNS ANNOUNCES AGREEMENTS WITH CHINA

COTTONSEED PRODUCTS EXPORT REPORT

MOVING?

COTTONSEED STOCKS HIGH; CRUSH REMAINS ON HURRIED PACE - Stocks of cottonseed at oil mills remain considerably above their 5-year average at the end of June, in spite of cottonseed crushers’ stepping up the crush rate, according to NCPA’s latest monthly survey of member mills.  Cottonseed stocks on June 30 were reported to be 952,000 tons, 400,000 tons higher than the 550,000 ton level they have averaged over the past 5 years.  For the month of June, 263,000 tons of cottonseed was crushed and another 90,000 tons shipped, either to dairies or into the export market.  It may not be a coincidence that cottonseed stocks remain high this late in the season with the 2005/06 cotton crop coming in behind both last year’s pace and the 5-year average, with 67% of the crop squared as of July 10 compared to 80% a year ago and  77% normally squared at this point in the season…..This year’s cottonseed crush stands at 2.7 million tons with one more month to go in the “crush year”.  USDA has forecast the crush for 04/05 to reach 2.835 million tons, and level the industry should reach if not surpass.   July’s crush total normally reaches 162,000 tons, and monthly crush totals have been exceeding their averages by at least 5% over the last three months. ….. USDA revised their forecast for the 2005/06 cottonseed crush down to 2.735 million tons from 2.95 million tons forecast last month.  Forecasters reduced cottonseed yields 10 lbs. per bale this month to bring their estimate for total cottonseed production for 05/06 down to 6.76 million tons from 6.96 million tons forecast in June.  The reduction in cottonseed supplies led to the lower crush forecast.  The brisk demand for cottonseed products, especially cottonseed oil, along with a large level of cottonseed stocks is why the 2005/06 cottonseed crush was previously forecast at 2.9 million tons.

COTTON ACREAGE HIGHER THAN 2004, AG OFFICIALS SAY - All cotton plantings for 2005 are expected to total 14.0 million acres, 3 percent above last year.  Upland acreage is expected to total 13.8 million acres, also up 3 percent.  Producers in California, Florida, Georgia, Kansas, New Mexico, and Texas decreased acreage from last year.  Growers in all other cotton producing States increased or planted the same acreage as 2004.  American-Pima cotton growers planted 266,000 acres, up 7 percent from 2004.  The increase is primarily in California, where producers planted 15,000 more Pima acres than last year. (Source:  USDA-NASS, June 30, 2005)

WHAT'S NEW @ COTTONSEED.COM - The Statistics section of cottonseed.com shows USDA’s latest estimate for supply & demand of cottonseed & cottonseed products.  In addition, NCPA’s latest weekly and monthly surveys are posted with crush and seed data…..Cottonseed exports remain brisk to Mexico, with a good supply also making its way to Japan and Korea.  May  cottonseed meal shipments to Mexico topped their highest level in many months at 10,671 metric tons.  Complete details are also available in the Statistics section of the web site…..NCPA/CCI Consultant R. Silva reports on latest developments in Mexico in his Mexico Consultant Reports.

CHANGE OF ADDRESSES NEEDED - In finalizing the 2005-06 Trading Rules Book, NCPA asks that any and all changes of address and/or staffing be forwarded to the Association office.

AG SECRETARY JOHANNS ANNOUNCES AGREEMENTS WITH CHINA - Agriculture Secretary Mike Johanns announced progress with China on several key market access fronts, following meetings with Chinese officials. “Last year, U.S. farmers and ranchers sold over $6 billion in agriculture products to China, making it our 5th largest export market,” said Johanns. “These agreements with the Chinese today will help to further expand our trade opportunities with one of American agriculture's top trading partners to build on our current trade success.” In his first visit to China as Secretary of Agriculture, Johanns took part in the meeting of the U.S.-China Joint Commission on Commerce and Trade (JCCT), a bilateral forum for resolving trade issues, which was also attended by U.S. Trade Representative Rob Portman and Commerce Secretary Carlos Gutierrez. Leading the delegation for China was Vice Premier Wu Yi. Johanns affirmed with Chinese officials the need for China to lift its ban on U.S. beef, noting the critical need for China to adhere to a science-based system that includes following internationally recognized BSE guidelines. He urged the Chinese officials to send a technical team to the United States to help facilitate the timely re-opening of their market. In response, China has pledged to send a technical team to the U.S. in October of this year and will be working with USDA officials in the interim to provide more information on the timeline and process for reopening their market to U.S. beef. Johanns also announced the approval by China of NK603, a variety of Round Up Ready corn, bringing the total Chinese biotech approvals to eight varieties of corn, two of cotton, seven of canola and one variety of soybeans…...NCPA President Robert Lacy and past President Danny Brown will travel to China in the coming weeks as part of a USA Cotton Linter Delegations, co-sponsored by Cotton Council International and NCPA, in an effort to better understand the market potential for US cotton linters.

COTTONSEED PRODUCTS EXPORT REPORT

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.

July 13, 2005