WORLD DEMAND FOR VEG OIL STAYS STRONG

COTTONSEED PRODUCTS EXPORT REPORT

WEEKLY CRUSH FOR JULY 9

2007 ANNUAL CONVENTION

WHAT'S NEW @ COTTONSEED.COM

GUIDE AVAILABLE TO HELP AG PRODUCERS PROTECT US FOOD SUPPLY

COTTONSEED.COM/MOBILE

MOVING?

WORLD DEMAND FOR VEG OIL STAYS STRONG - World demand for vegetable oils is forecast to exceed production for the first time in five years, according to an interagency commodity committee at USDA. World vegetable oil production for 2006/07 is forecast at just over 120 million metric tons (mmt) this month, a 3.5% increase in production of 116 mmt from a year ago and 8.2% higher than the 111 mmt total of 2004/05. Vegetable oil demand is forecast to stay just ahead of production in 2006/07, according to USDA forecasters, with offtake estimated at 121 mmt compared to 115 mmt in 2005/06 and 109 mmt two years ago. World stocks of vegetable oils began building in 2002/03, from 6.6 mmt to just over 9.0 mmt in 2005/06. Projections call for vegetable oil stocks to drop to just under 8.0 mmt at the end of the 2006/07 marketing year. For the US, domestic veg oil usage remains above domestic production, according to USDA. Although veg oil production is forecast to fall 2% in 2006/07 to 10.08 mmt from 10.28 mmt in 2005/06, domestic demand is expected to continue to “bulge” ahead, from 11.25 mmt in 05/06 to 11.77 mmt in 2006/07, an increase of nearly 5%. While domestic usage of fats and oils fell during much of the “fat wars” period from 1998—2003, usage has crept higher each of the past three years and is forecast to continue that trend this season. (Source: USDA, World Ag Supply and Demand Estimate, 7/12/2006)

COTTONSEED PRODUCTS EXPORT REPORT - The US exported nearly 66,000 metric tons of cottonseed and cottonseed products in May, according to the latest US Census report.  Cottonseed shipments to Mexico were, by volume, the largest, at 37,000 mt, with cottonseed meal shipments to Mexico also strong at 14,000 mt.  Interest from Korea in cottonseed also was keen in May, as were sales of linters to China.  Year-to-date US exports of cottonseed passed 350,000 mt for the Oct-May reporting period.  That’s nearly 100,000 mt more than the 254,000 mt of seed exported at this point in the season a year ago and close to 90,000 mt higher than the  260,000 mt that was shipped in 2003/04.  A shipment of 4,400 mt of seed to Korea in May pushed total seed exports to nearly 51,000 tons for this year. Link: Cottonseed Products Export Report

WEEKLY CRUSH FOR JULY 9 - Cottonseed crushings for the week ending July 9 totaled 40,185 tons compared to 38,114 tons crushed the previous week and 48,912 tons crushed two weeks earlier.  As the crush season winds down (ending July 30), weekly crush totals tend to slow as well.  However, weekly crush totals have fallen below their five-year average only twice over the past nine weeks.  Year-to-date crushings, based on the Association’s weekly crush reports, have reached 2.877 million tons with three reporting periods remaining, well ahead of the year-ago level of 2.799 million tons and the 2.553 million ton mark of this time two seasons ago.  Weekly crushings this time of year generally average a little over 45,000 tons per week, putting year-ending crushings at just over 3.0 million tons.  NCPA’s monthly survey of member mills should also show crushings are closing in on the 3.0 million ton mark, as well as how the industry is working through it’s inventory of seed and meal.

2007 ANNUAL CONVENTION - The Sandestin Beach Hilton in Destin, Florida has been selected as the sire for NCPA’s 111th annual convention.  Destin, FL, also the site of the May 2004 meeting, offers beautiful beaches, ample golf, fantastic shopping and a number of fine dining choices.

WHAT'S NEW @ COTTONSEED.COM - A number updates to the Statistics section have been made as of July 12, including the latest Cottonseed Products Export Report and the latest Supply and Demand Estimates for US Cotton and Cottonseed Products…..Ricardo Silva continues to track developments in Mexico that may impact sales of cottonseed and cottonseed feed products to Mexico. Weather patterns on both sides of the border as well as exchange rate fluctuations in Mexico impact buyers.  Silva’s latest report from June 27 is currently available in the Mexico Consultant’s Report Section of the web site…..Members and Non-members alike may access the What’s New section to view select industry news, updates and press releases.  A membership application form is also available for you to direct to your newest contact…..Potential customers have posted messages to the Cottonseed Forum section of the home page, looking for seed suppliers, equipment and other industry products….Remember to check the Cottonseed Calendar for updates for industry meeting news.

GUIDE AVAILABLE TO HELP AG PRODUCERS PROTECT US FOOD SUPPLY - The U.S. Department of Agriculture recently released a guide entitled “Pre-Harvest Security Guidelines and Checklist 2006” to help agricultural producers enhance security at the farm level. These practical measures help to protect against natural disasters, as well as the unintentional or intentional introduction of plant or animal diseases. “We work on many fronts to ensure that our nation continues to provide the safest food supply in the world,” said Agriculture Deputy Secretary Chuck Conner. “While there is no one-size-fits-all approach to protecting agriculture, recommendations in this guide can be beneficial to a variety of types and sizes of agricultural operations.” Food and agriculture biosecurity is an important component of USDA's mission. Improving awareness through enhanced outreach and communications is a key element of USDA's homeland security efforts. The voluntary guidelines and checklists were developed based upon recommendations made by producers throughout the United States. Guidelines have been developed for general agriculture; dairy; crops; cattle and poultry security. This guide is the latest in a series of materials produced by USDA to bolster food and agriculture security. Agriculture and food account for 13 percent of the U.S. gross domestic product, 18 percent of its employment and $140 billion in revenue. USDA continues to work with its federal, state, local partners as well as industry in protecting the nation's agriculture and food production, from threats such as natural disasters and either the naturally occurring, intentional or unintentional introduction of diseases and pathogens as they do not respect geographic borders. USDA's local Farm Service Agency Service Centers are distributing the “Pre-Harvest Security Guidelines and Checklist 2006” to agricultural producers throughout the country. For more information about USDA's homeland security efforts, go to www.usda.gov/homelandsecurity. (USDA, 7/12/2006)

COTTONSEED.COM/MOBILE - Catch-up with the latest cottonseed industry news as well as cotton and cottonseed estimates while on the move. Simply enter www.cottonseed.com/mobile as the url (web address) to get content designed for your Palm or other web-enabled phone. Right now, weekly cottonseed crush updates are available, as well as the latest state-by-state cotton and cottonseed production estimates. Check back weekly to maintain the most current data.  Specially designed web pages at cottonseed.com/mobile can now provide you with the latest supply and demand estimates for cottonseed, cottonseed oil and cottonseed meal along with a comparison from previous years.

 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 12, 2006