SEMINARS TO TARGET FEEDLOT OWNERS, MANAGERS & OPERATORS IN MEXICO

AG GROUPS POINT OUT TRANSPORTATION ISSUES

WHAT'S NEW @ COTTONSEED.COM

COTTONSEED CRUSH REPORT

U.S. CATTLE ON FEED UP 7%, REPORT SAYS

RECENT NEWS & INFORMATION FROM USDA

ENDING COTTONSEED STOCKS

MOVING?

SEMINARS TO TARGET FEEDLOT OWNERS, MANAGERS & OPERATORS IN MEXICO - NCPA is preparing for a series of seminars in Chihuahua and Guadalajara, Mexico next month that will encourage the inclusion of US cottonseed meal in feed ratios and target feedlot operators, managers and nutritionists. According to the Cattleman’s Association of Chihuahua (Union Ganadera de Chihuahua) consumption of US cottonseed meal is forecast to exceed 8,000 metric tons for this area alone. In addition, the Association has started construction on a new 20,000-head feedlot. Association members oversee an estimated one million head of beef and dairy cattle. Dr. Dale Blasi, Professor and Extension Specialist at Kansas State University who specializes in beef cattle nutrition and management, will lead the seminars. Primarily, Dr. Blasi will relate the use of cottonseed meal and other cottonseed products in stocker cattle and receiving rations in feedlots. Feedlot owners and operators from the Mexican states of Sonora, Sinaloa and Jalisco will meet in Guadalajara for a seminar covering similar topics. U.S. cottonseed meal usage in the region’s feedlots is forecast at just over 2,000 mt, with an additional 42,000 mt potential for dairy cow operators in the state of Jalisco alone. NCPA has carried out seminars before and they have always been very well received by end-users and potential customers in the region. The seminars come at a particularly convenient time this year, coinciding with NCPA’s launch of espanol.cottonseed.com, the Association’s Spanish-language web site equivalent of cottonseed.com. Member searches, information forums and NCPA publications are available in Spanish in an new, user-friendly format. NCPA is also advertising the new site in Spanish language magazines such as Hoard’s Dairyman En Espanol and Carta Ganadera.

AG GROUPS POINT OUT TRANSPORTATION ISSUES - The Ag Transportation Working Group, a coalition of national agricultural interest organizations including cotton, soybean and other oilseed groups, among others, delivered a letter to Secretary of Agriculture Johanns this week detailing a number of critical transportation issues having a negative impact on agricultural. The letter noted that in order to maintain the ability to remain competitive in a very dynamic domestic and world market, and to be in a position to capture new market opportunities, the United States must address these serious transportation challenges. The group believes USDA needs to play a lead role on behalf of U.S. agriculture in shaping the outcomes of key transportation issues directly affecting American agriculture. Capacity constraints, “small rate” cases, rail rates and service, fuel surcharges and inland waterway systems were among the issues raised by the group for closer scrutiny by the Department of Agriculture. A copy of the letter is available on the NCPA web site. Click here for the Ag Transportation Letter.

WHAT'S NEW @ COTTONSEED.COM - Follow the “En Espanol “ link on the Association home page to NCPA’s Spanish-language equivalent web site, espanol.cottonseed.com. For those not as conversant in Spanish, follow the “En Ingles” link to get back….. Ricardo Silva also reports from Mexico the latest news regarding demand for cottonseed feed products in his August report, now available in the Mexico Consultant Report section…..Cottonseed crushings for the week ending August 27 showed a continued increase in crush activity for the month. After falling below 40,000 tons during the first week in July, weekly crushings have steadily climbed over 40,000 and 50,000 tons to 55,462 tons this past week. See the Statistics section for more details…..Also in the Statistics section, the latest monthly production and stocks report for cottonseed and cottonseed products, as well as USDA’s most recent forecast for demand for the coming 06/07 season.

COTTONSEED CRUSH REPORT - Cottonseed crushings for the week ending August 27 totaled 55,462 tons compared to 51,197 the previous week. A year ago, crushings for a comparable period were 57,646 tons but only 45,545 tons two years ago and a sparse 38,185 tons three years ago…..July’s crush reached 201,606 tons compared to 227,307 tons in June and 221,220 a year ago July. That brings year-to-date crushings to 3.026 million tons, based on reports submitted to NCPA. Stocks of cottonseed were well above any of the previous three seasons at 728,231 tons (see page 4)…... Stocks of cottonseed hulls were 26,749 tons on July 31, higher than at any other time this season, yet below the five-year average for July by nearly 8,000 tons. Stocks of hulls the previous month were just slightly lower at 25,486 but stood at nearly 42,000 tons a year ago on July 31, 2005…..Shipments of meal slowed in July, bringing stocks up to 82,795 tons at the end of July vs 71,515 tons at the end of June and 72,572 tons at the end of July a year ago. See page three of this Newsletter for complete details.

U.S. CATTLE ON FEED UP 7%, REPORT SAYS - Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on August 1, 2006, according to USDA’s latest report. The inventory was 7 percent above August 1, 2005 and 10 percent above August 1, 2004. This is the second highest August 1 inventory since the series began in 1996. Placements in feedlots during July totaled 1.96 million, 17 percent above 2005 and 14 percent above 2004. Net placements were 1.91 million. During July, placements of cattle and calves weighing less than 600 pounds were 570,000, 600-699 pounds were 403,000, 700-799 pounds were 490,000, and 800 pounds and greater were 500,000. Marketings of fed cattle during July totaled 1.96 million, 2 percent above 2005 and 2 percent above 2004. Other disappearance totaled 58,000 during July, 5 percent below 2005 but unchanged from 2004. (Source: USDA, NASS, August 18, 2006)

RECENT NEWS & INFORMATION FROM USDA - Counter-Cyclical Payments: Agriculture Secretary Mike Johanns this week directed that 2005-crop year counter-cyclical payments be delivered as quickly as possible to expand the financial resources of farmers facing drought. An estimated $700 million in payments to upland cotton and grain sorghum producers will be made this week. This will constitute the earliest delivery of counter-cyclical payments on record. Payments to peanut producers will also be expedited, following the calculation of the final 2005 average price…..Aid to Drought Regions: Secretary Johanns also announced a new $50 million program for livestock producers impacted by drought, focusing nearly $30 million in unused conservation funds on drought. “While some parts of the country are experiencing very good crop conditions, drought is taking a toll on farming and ranching operations in other areas of the United States this year,” said Johanns. “Today's actions emphasize USDA's commitment to use every resource available to help farmers and ranchers who are impacted by drought.” The new $50 million program for livestock producers, called the Livestock Assistance Grant Program, will provide $50 million in Section 32 to states in block grant form. States will distribute to livestock producers in counties that were designated as D3 or D4 on the Drought Monitor anytime between March 7 and August 31, 2006. The grants will help livestock producers restore their purchasing power. A list of eligibility criteria and eligible counties can be found at http://www.usda.gov by clicking on the drought spotlight.

Ending stocks of cottonseed were just over 728,000 tons on July 31, according to the Association’s most recent survey of member oil mills.  That’s significantly higher than USDA’s forecast of 529,000 tons of ending stocks.  Expectations are that the size of the 2006/07 cotton crop will gradually decline up to harvest time, so it’s not likely the larger-than-normal carry-in of stocks will have much impact.

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.

August 30, 2006