US COTTONSEED MEAL EXPORTS TO MEXICO SURGE, ACCORDING TO US CENSUS DATA

WORLD OILSEED PRODUCTION FORECAST SLIGHTLY LOWER

WHAT'S NEW @ COTTONSEED.COM

WEEKLY COTTONSEED CRUSH

COTTON LINTER TRADE LEAD

MONTHLY SUMMARY OF US COTTONSEED CRUSHINGS & STOCKS

CRUSH STAYS AHEAD OF YEAR AGO LEVELS

ENDING STOCKS OF COTTONSEED HULLS

MONTHLY COTTONSEED CRUSH VS 5-YEAR AVERAGE

MOVING?

US COTTONSEED MEAL EXPORTS TO MEXICO SURGE, ACCORDING TO US CENSUS DATA US cottonseed meal exports to Mexico jumped from just over 5,000 metric tons in January 2006 to nearly 10,000 mt in February, according to US Census trade data.  That’s an increase of just over 90%. Year-to-date (Oct-Feb) exports of US meal to Mexico stand at 32,700 mt compared to 21,900 mt over the same period a year ago and 18,053 mt two years ago.  US cottonseed meal exports are finding their way into more dairy and beef feed lot rations, according to  NCPA/CCI’s consultant in Mexico, Ricardo Silva.  He notes in his April report that US meal exports could continue  to increase but recent slight devaluations of the Mexican peso may slow shipments somewhat. The peso moved from 10.9 to 11.17 pesos to the dollar recently.  The increase, according to Silva, was a temporary seasonal fluctuation due in large part to the Easter vacation period.   The demand for US dollars jumped, he says,  as Mexican  nationals bought US dollars to replace pesos during a period of heavy travel to the States and other US dollar denominated areas.  Silva’s most recent report is posted on the NCPA web site in the Members’ Only section under “Mexico Consultant Reports.”

WORLD OILSEED PRODUCTION FORECAST SLIGHTLY LOWER - World oilseed production for 2005/06 is projected at 391.0 million tons, down 2.0 million tons from last month, but 10.4 million tons above 2004/05 by USDA.  Global soybean production is reduced 1.9 million tons mostly due to lower production for Brazil.  Brazil soybean production is reduced 1.5 million tons to 57.0 million tons based in part on lower-than-expected yields reported by the Brazilian government, especially in southern growing areas.  Despite the reduction, production is 4 million tons above last year's record.  Paraguay soybean production is also reduced this month reflecting abnormally warm and dry conditions during mid-season. Other changes include reduced sunflowerseed production in South Africa and reduced cottonseed production in Argentina.  Global oilseed stocks are reduced this month primarily due to lower projected soybean stocks in South America resulting from reduced Brazilian production and increased exports by Argentina. U.S. 2005/06 soybean supply and use are little changed for April, according to USDA.  Prospective soybean meal exports are raised 150,000 short tons to 6.95 million short tons, reflecting strong year-to-date shipments, especially to Canada and Mexico.  Domestic soybean meal use is reduced based on the slower-than- expected pace of domestic disappearance and strong competition from other protein sources including corn by- products.  USDA forecast the U.S. season-average soybean price for 2005/06 at $5.45 to $5.75 per bushel compared with $5.40 to $5.80 last month.  Soybean oil prices are projected at 21.5 to 23 cents per pound, up 0.5 cents on the bottom of the range.  Soybean meal prices are unchanged at $165 to $180 per short ton, according to forecasters.  USDA’s World Agricultural Supply and Demand Estimates (WASDE) report provides USDA's comprehensive forecasts of supply and demand for major U.S. and global crops and U.S. livestock. The report gathers information from a number of statistical reports published by USDA and other government agencies, and provides a framework for additional USDA reports.

WHAT'S NEW @ COTTONSEED.COM - Find out who is planning to attend this year’s annual convention, as well as review the amazing list of prizes to be given away under the Convention link of cottonseed.com…..NCPA/CCI consultant Ricardo Silva has relayed his latest report from Mexico, available for viewing in the Mexico Consultant Reports’ section…..Weekly cottonseed crushings have slowed during the past two reporting periods, partially due to scheduling and partially due to the Easter holiday weekend…...Help promote NCPA membership this time of year!  Direct those not yet members to the What’s New section to download a membership application.  The form can be completed and faxed or mailed to the NCPA office.

WEEKLY COTTONSEED CRUSH - Cottonseed crushings totaled 49,333 tons for the week ending April 23, the second consecutive week that crushings have fallen significantly below the 60,000 ton mark.  Holiday schedules were a main reason for the decline, and forecasters predict crushings will return to the more normal level of between 55,000 and 60,000 tons for the remainder of the crush season.

COTTON LINTER TRADE LEAD - Beijing Eurasia-Biology International Trade Ltd. Seeks quote on first and second cut cotton linters. C&F Qingdao; 3% ash, 1.3% oil.  Contact Ounai at sunyan@euroasia-china.com.cn or trade@euroasia-china.com.cn.

MONTHLY SUMMARY OF US COTTONSEED CRUSHINGS & STOCKS

CRUSH STAYS AHEAD OF YEAR AGO LEVELS - Nearly 2.1 million tons of cottonseed have been crushed by NCPA member firms for the August 2005—March 2006 period, according to the Association’s latest monthly survey. By comparison, the industry had crushed  1.9 million tons of seed a year ago at this time and 1.8 million tons as this point in the 2003/04 season.  The crush for March totaled  276,692 tons, 10% higher than the 250,627 tons crushed in February 4% higher than the 267,204 tons crushed a year ago March.  Cottonseed receipts stand at 4.2 million tons for the year.  All of last year, receipts totaled 4.18 million tons. Meal stocks managed to move lower for March, ending the month at 14,344 tons compared to 24,149 tons at the end of February.  Stocks of hulls, oil and linters all ended the month slightly higher…...USDA forecast  stocks of cottonseed at the end of July to be 630,000 tons.  Seed stocks now stand at just over 1.9 million tons, meaning disappearance over the four-month April-May-June-July period will need to reach 1.27 million tons in order to reach that level.  That certainly seems within reach as disappearance last year over the Apr-Jul period totaled 1.1 million tons. In the previous three years, disappearance averaged just under 900,000 tons for the four-month time frame.

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.

April 26, 2006