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NO. 2560
AUGUST 15, 2006

COTTONSEED BIODIESEL PROJECT UNDERWAY

PROPOSAL FOR WHOLE COTTONSEED TRANSPORTATION

WHAT'S NEW @ COTTONSEED.COM

2006-07 COTTON LEADERSHIP CLASS SELECTED

COTTONSEED PRODUCTS EXPORT REPORT

2006-07 COTTON CROP FORECAST AT 20.4 MILLION BALES

NCPA MERIT SCHOLARSHIP FOR MEMBERS

MOVING?


COTTONSEED BIODIESEL PROJECT UNDERWAY - Texas Tech University’s Center for Engineering, Logistics and Distribution recently provided an update this week to NCPA on research to evaluate the existing cottonseed oil extraction process and to identify an optimal extraction point to integrate a blending process for cottonseed oil biodiesel. Their study is also focusing on physical production characteristics of cottonseed biodiesel; permitting requirements, and retrofitting existing oil mill machinery to utilize cottonseed biodiesel. Work is close to complete on an economic model which will allow for nearly any size cottonseed oil mill to determine a break-even point using expense and price data specific to their operation. Next steps will include test runs of varying mixtures of cottonseed biodiesel and real-time measurements of engine/pump performance as well as emission and particulate matter measurements. Joint funding of the project is by the NCPA and Texas Cottonseed Crushers’ Association, with special thanks to PYCO Industries, Lubbock, TX for use of their work space and access to the test area.

PROPOSAL FOR WHOLE COTTONSEED TRANSPORTATION - The International Maritime Organization is considering a proposal to their Code of Safe Practice for Solid Bulk Cargoes regarding the safe transportation of whole “fuzzy” cottonseed. Submitted by the Australian Maritime Safety Authority, the proposal notes that whole cottonseed, under laboratory testing, did not exhibit any properties that would necessitate its classification as a class 4 dangerous good, and since it does not fit into any of the other classes 1 to 9, it should not be classified as hazardous under the regulations. While no definitive conclusions were available from trial shipments that whole cottonseed causes oxygen depletion in ship’s holds, the AMSA believes it to be comparable to other types of organic that are know to do so. Therefore, AMSA considers whole cottonseed to be a material hazardous only in bulk (MHB). A public meeting will be held on Tuesday, August 29th 2006 in Washington, DC to discuss this proposal and others before being considered at the 11th session of the Sub-Committee on Dangerous Goods, Solid Cargoes and Containers (DSC) to be held at the International Coffee Organization Headquarters in London, England from September 11 to September 15, 2006. Comments may be submitted to Richard C. Bornhorst, Office of Operating and Environmental Standards, U.S. Coast Guard (tel. 202-372-1426, e-mail rbornhorst@comdt.uscg.mil), before the public meeting in Washington on August 29. A copy of the proposal is available from the NCPA office and on the NCPA web site at the following link: Transport of Fuzzy Cottonseed

WHAT'S NEW @ COTTONSEED.COM - Applications for the NCPA Merit Scholarship are available in the What’s New section of the web site in MS Word and Adobe Acrobat format…..State-by-state cottonseed production forecasts are available in the Statistics section of the web site. The NCPA forecast uses 3-year average cottonseed yields and USDA’s latest cotton production numbers…..Also in the Statistics section is the latest Cottonseed Products Export Report. Compiled from US Census export data, NCPA provides major export destinations for US cottonseed and cottonseed products during June 2006 and to-date for the current marketing year (Oct-June). Cottonseed shipments to Mexico were especially high in June at just over 49,000 metric tons, with over 4,000 mt going to Korea. Cottonseed meal shipments to-date are just over 93,000 mt for the current marketing year, fast approaching the record 128,982 mt total of 2000-01.

2006-07 COTTON LEADERSHIP CLASS SELECTED - Congratulations are in order for Brandon Winters, Producers Cooperative Oil Mill, Oklahoma City, OK, as the Cottonseed industry representative to the 2006-07 Cotton Leadership Class. The newly selected class will begin their first training session this September 24-29 in the Mid-South, including an orientation to the National Cotton Council and presentation skills training. The Program, now in its 24th year, is intended to foster leadership skills in individuals who demonstrate the potential and desire to be leaders in the cotton industry. The 2006-07 class is comprised of four cotton producers and one participant from each of the six other industry segments. In addition to learning the role of the NCC within the U.S. cotton industry, the class will visit with industry leaders, tour production and processing operations, and observe research activities. More than 200 industry members have participated in the Leadership Program since its inaugural 1983-84 class. The Program is supported by a grant to the Cotton Foundation from DuPont Crop Protection and is administered by NCC’s Member Services department. Teresa McMillan, Planters Cotton Oil Mill, was the last Cottonseed industry representative to the Leadership Class.

COTTONSEED PRODUCTS EXPORT REPORT

2006-07 COTTON CROP FORECAST AT 20.4 MILLION BALES - USDA estimated the 2006-07 US cotton crop at 20.4 million bales in its August report. Upland production was estimated at 19.5 million bales and pima production at 893,000 bales. Harvested area was estimated at 12.8 million acres, meaning nearly 2.5 million acres will not be harvested, based on USDA's June acreage report. Average yields per harvested acre are forecast to be 765 pounds, 6 pounds above the 5-year average but 66 pounds lower than 2005. The Southeast crop is estimated at 4.51 million bales, based on harvested acres of 3.24 million and a regional average yield of 670 pounds, 39 pounds below the 5-year average for the region. Most states are expected to see a drop in yields when compared to their respective 5-year averages with the greatest declines in Alabama and Georgia. Alabama's average yield is down 266 pounds from last year to 430 pounds per harvested acre while Georgia is down 82 pounds to 632 pounds per harvested acre. In the Mid-South, expected production is 8.03 million bales. Harvested area is estimated to be 4.17 million acres and the expected yield is 925 pounds per harvested acre. All states in the region except Mississippi are expected to see yield increases of at least 50 pounds when compared to their 5-year average. Mississippi's yield is estimated at 840 pounds per harvested acre, 16 pounds lower than their 5-year average. The Southwest upland crop is an estimated 5.47 million bales. Expected harvested area is 4.51 million acres and the regional average yield is 582 pounds. Expected yields are below the 5-year average in both Oklahoma and Texas; however, yield per harvested acre is estimated to be 581 pounds in Kansas, 65 pounds above the 5-year average. With 2.30 million acres unharvested, abandonment in the Southwest is estimated at 34%. Upland production in the West is an estimated 1.53 million bales with harvested area of 576,000 acres and a regional average yield of 1,274 pounds, 51 pounds less than the region's 5-year average. Both Arizona and New Mexico's expected yields are higher than their respective 5-year averages while California's expected yields are 88 pounds lower at 1,294 pounds per harvested acre.

NCPA MERIT SCHOLARSHIP FOR MEMBERS - NCPA is pleased to announcement the National Cottonseed Products Association Merit Scholarship, which will provide scholarships for the children and/or legal guardians of NCPA members. Each scholarship is for $1,000 and will provide for tuition, books, and/or room and board expenses. The scholarship is limited to use at an institution of higher learning that is accredited by recognized accreditation agencies and offers at least a degree upon completion of the course of study offered. The scholarship is made possible through funds established by the Mississippi Valley Oilseed Processors Association and provides the NCPA with “…oversight authority as to the charitable, scientific and educational uses of annual accumulated income derived from the principal of the funds”. Applications are available from the NCPA office and in the What’s New section of cottonseed.com. The first scholarship applications will be due to the NCPA office no later than October 1, 2006. Following a review of the applicants by the Association’s Scholarship Committee, finalists will be forwarded to the NCPA Board of Directors for final selection of the winners, to be announced around December 1. Applicants will be asked to write an autobiography explaining why they will be a good investment if awarded the scholarship. In addition, applicants will be asked to write an essay describing why agriculture is important to them and/or their family. Student applicants will not be required to make agriculture their major course of study, but must present a good understanding of how and why agriculture is important to them, their community and the US.

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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August 15, 2006


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