LARGER COTTONSEED CRUSH FORECAST BY USDA

SUPER SUNDAY FOR COTTONSEED OIL

WHAT'S NEW @ COTTONSEED.COM

NCPA’S OIL CAMPAIGN NOW AN AWARD WINNING ONE

COTTONSEED OIL TOUR BLOG

COTTONSEED PRODUCTS EXPORT REPORT

CONSULTANT REPORTS ON MEXICO

MOVING?

LARGER COTTONSEED CRUSH FORECAST BY USDA - As predicted by NCPA in December, USDA moved its January forecast for 2008 cottonseed crushings higher, from 2.4 million tons to 2.65 million tons. The revised crush forecast would nearly equal crushings from a year ago, which came in at 2.68 million tons, and provide much needed oil for the food industry’s craving for trans-free oils. In a December NCPA press release, NCPA noted that higher cotton yields and a steady increase in the size of the 2007-08 cotton crop, along with crushings on track with year-ago levels, pointed to crushings higher than they were previously forecast. The increase in USDA’s crush outlook also moved projections for cottonseed oil production higher, from 755 million lbs to 835 million lbs. Accordingly, domestic demand for cottonseed oil is projected to reach 734 million lbs by USDA. The Department moved the additional 250,000 tons of cottonseed from the feed side of the cottonseed balance sheet, along with a small increase (again) in projected cottonseed production.

SUPER SUNDAY FOR COTTONSEED OIL - With the exception of Halloween, Super Bowl Sunday is one of the largest “snacking” days of the year. One retailer taking advantage this year includes Dale & Thomas Popcorn, whose gourmet popcorn is backed by endorsements from Oprah and Super Bowl MVP Troy Aikman. And of course a close look at the labels of a number of their popcorn varieties shows they include cottonseed oil, no doubt due to cotton oil’s unique ability to enhance the flavor of foods.

WHAT'S NEW @ COTTONSEED.COM - NCPA’s latest monthly survey of oil mills shows year-to-date crushings at 1.08 million tons, nearly identical to year ago levels. Receipts of cottonseed at mills is somewhat behind, however, as 2.67 million tons has been received by mills so far this season compared to 2.97 million tons a year ago at this time…..Weekly cottonseed crushings continue to track steady for the year, with the usual dip during the Christmas and New Year’s holidays. For the week ending January 13, crushings were 64,235 tons vs 52,155 tons the previous week and 58,359 tons the same period a year ago…..NCPA’s consultant in Mexico, Ricardo Silva, reports on developments with cottonseed feed products in his latest report…..Weekly export sales of meal to Mexico appear headed higher so far this year—track it by following the Weekly Export Sales Report link in the Statistics section.

NCPA’S OIL CAMPAIGN NOW AN AWARD WINNING ONE - NCPA’s cottonseed oil campaign can now be called its “award-winning” cottonseed oil campaign, gaining local and regional recognition from the National Agri-Marketing Association (NAMA) for the October 2007 article in QSR Magazine, The Trans Free Effect. NCPA & Harvest PR Marketing placed first in the Mid-South Chapter with their entry, as well as first in Region V, which covers Florida, the Carolinas, Virginia and the rest of the Mid-South and Southeastern US. The submission was judged superior by an outside panel of agri-marketers and now, as a result of its first place finish in the Chapter and Region, will be considered for national honors as it competes in the “Best of NAMA”, the annual awards show of the trade group that represents agri-marketing professionals across the US. Harvest PR & Marketing , based in Portland, OR, has received honors in the past for their work with the Pear Bureau, Milwaukee Intl. Airport and Cotton Incorporated. A copy of the article is available in the Publications section of the NCPA web site.

COTTONSEED OIL TOUR BLOG - Follow the cottonseed oil tour and its regular blog entries at cottonseedoiltour.com. Yahoo searches for “cottonseed” and “cottonseed oil” for this site are surging with over 30% increases for both in the past month. In addition, find Ben Morgan’s podcast from the Beltwide Cotton Conferences by scrolling to the Jan 9 news article from Agwired.

COTTONSEED PRODUCTS EXPORT REPORT

CONSULTANT REPORTS ON MEXICO - NCPA’s consultant in Mexico Ricard Silva reports that as prices of other ingredients in feed rations rise in Mexico, the level of cottonseed meal will likely be reduced in feedlot and other rations, according to a major trading group in Monterrey, Mexico. High prices of feed ingredients along with a new law that will make feedlots along with other agricultural enterprises no longer tax exempted will make some feedlot owners make crucial decisions to either stay in business or not, according to the AYAMSA group in Monterrey. In addition, they expect next year’s cotton crop in Mexico will not reach 800,000 bales of cotton or 400,000 tons of cottonseed. Demand for DDG’s, according to AYAMSA, has cooled down due to price, better knowledge of its use and some quality issues. It is estimated that AYAMSA has imported 20,000 to 25,000 metric tons of US cottonseed meal in previous years…...Silva also reports that RAGASA of Monterrey, the only cottonseed crusher left in Mexico, is crushing around 600 metric tons of cottonseed per month. The amount of cottonseed meal they produce is mainly from US cottonseed; they expect to produce close to 2,100 metric tons of meal per year. The amount of meal RAGASA produces, along with US exports to Mexico (92,000 metric tons) during the last fiscal year (Oct 06-Sept 07), puts total use of cottonseed meal in Mexico at around 100,000 metric tons…...Fernando Novoa of the Confederacion Algodonera of Mexico considers that at a minimum, Mexico will produce similar amount of bales and cottonseed as previous years, at around 640,000 bales, with cottonseed production at about 240,000 metric tons. Increases will depend on GMO seed permits along with subsidies and if the space normally left for cotton planting is not used for other grains or oilseeds. AYAMSA also reported that a similar amount of US cottonseed meal could be imported as the last fiscal year due to the increasing demand for U.S. cottonseed meal by Mexico; as other protein sources increase and the only limiting factor could be its availability. For more details, see Ricardo Silva’s complete report in the Members Only Section of the NCPA web site.

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 866 Willow Tree Circle, Cordova, TN  38018, or email to info@cottonseed.com.

Return to Top

© National Cottonseed Products Association, Inc.

January 23, 2008