The Tulia Herald (Tulia, Tex.), Vol. 90, No. 12, Ed. 1 Thursday, March 25, 1999 Page: 12 of 18
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PAGE TWO B
THE TULIA (Swisher County) HERALD
THURSDAY, MARCH 25,1999
TelcotReport | CottOMypm
ulative buying and selling ruled the market this week, pushing it ■■
Speculative buying and selling ruled the market this week, pushing it
higher only two out of five days. USDA provided no excitement with its
weekly export sales report, so the possibility of a renewed Conservation
Reserve Program was the only fundamental news to provide any strength to
the bulls.
Futures rose on information concerning a new land conservation
program proposed this week. The proposed program will pay growers to idle
land for two to five years and could affect as many as 10 million U.S. crop
acres. USDA's current Conservation Reserve Program pays farmers to set
aside land for 10 years.
Cotton acreage could be affected by the proposal, especially acreage in
the major cotton growing areas of West Texas. Marginal land in this area
likely will be entered into a conservation program, leaving more productive
areas to be planted. Some market watchers said land conservation offers
cotton one of the best hopes for controlling acreage at a time when
overproduction and a lack of demand remain major problems.
After anxiously awaiting the arrival of USDA’s export sales report, the
market was unimpressed by the small number of sales and shipments. For the
week ended March 11, net salesof 1998-99 crop cotton totaled only 29,600
bales and shipments were slightly lower from die previous week at40,800
bales.
The figures paled in comparison to the previous week when net sales of
61,200bales and shipments of47,900bales were reported. South Korea once
again was in the top three buyers of U.S. cotton, this time as the featured
buyer, with purchases totaling 8,200 bales. Taiwan and Japan followed with
receipts totaling 6,100 and 3,600 respectively.
Some analysts noted that last week's higher cotton prices did not stifle
buying interest. The U.S. now has sold almost the entire 4.2 million bales
expected by USDA for the 1998-99 season, and merchants have shipped 72
percent of that target.
In addition, the department reported commitments of 1999-2000 crop
cotton fell from last week’s marketing year high of49,600 bales to 35,500
bales. Mexico, a major U.S. trade partner, was the largest buyer of U.S.
cotton, and El Salvador was a close second.
Trading was slower in the spot codon market as well. Sales on the
TELCOT electronic marketing system in the five trading days ended March
18 totaled only 2,612 bales, a considerable decrease from the previous
week's sales of 16,717 bales. Average daily prices received by producers
utilizing TELCOT ranged from 37.15 to46.45 cents perpound, compared to
a range of 43.18 to 49.35 cents per pound the previous week.
Volatility in the spot cotton market is expected to continue indefinitely.
Very little 1998-99 crop cotton of high quality remains to be sold, and
producers are reluctant to sell the balance of their cotton at current price
levels. One analyst noted, "The remaining Texas/Oklahoma cotton is unable
to compete in the world market without Step 2 funding. There simply isn't
a demand for that particular type of cotton at the moment especially at the
prices producers must receive to bread even."
Next week will bring the cotton consumption report which could have
some impact on prices. Analysts are watching for indications that mill use
will reach USDA’s current projection of 10.4 million bales.
The most awaited news, however, is USDA’s planting intentions report
scheduled for release on March 31. The report will give the market an initial
acreage figure and a slightly clearer picture of how large the 1999-2000crop
will be.
For now, with very little cotton planted, there seems to be very little that
can move the market. The threat of another drought in West Texas, a major
cotton growing area, has not yet caused prices to jump. However, analysts
are keeping track of weather developments and grower sentiments there.
ews
Tulia Livestock
A u etto n
Monday, March 22, receipts 3,408 head. Compared to last weeks sale
a light run of Stocker calves and light yearlings sold $1.00 to $3.00
lower. Feeder strs. and hfrs sold fully steady. Packer cows and bulls
traded 52.00 to 54.00 higher.
HFR CLVS & LT. YRLGS
14 x bred 566# - 71.25
8 mx 313# - 88.00
14 mx 495# - 77.50
73 blk 601#-71.25
26 mx 547# - 77.00
FEEDER STEERS
8 mx 665# - 74.00
28 xbred 738#-71.25
30 mx 691# - 73.75
194 mx 826# - 68.10
146 xbred 778#-69.75
19 mx 666# - 76.25
68 mx 746# - 69.50
21 mx 820# - 69.50
STR CLVS & LT YRLGS
16 mx 588# - 79.50
12 mx 450#-91.50
13 xbred 605#-77.75
32 mx 602#-81.00
FEEDER HEIFERS
10 mx 628#-68.50
35 mx 670#-68.60
22 mx 710#-66.50
22 mx 692# -67.00
21 mx 707# -68.50
28 blk. 682#-69.75
23 mx 723#-67.00
26 mx 759# - 65.25
30 mx 646#-70.00
94 mx 795#-63 JO
89 mx 667#-66.00
121 mx 624#-68.75
156 mx 703# - 65.25
15 mx 650#-70.00
ISJJ^ ROOFING
New/Repairs/Reroof/Maintenance
Free Estimates
Cedar * Shakes * Composition * Built-Up * Torchon * Tile-
Clean-up and Haul-Off
LARRY DICKERSON “certified" 293-5829
66 mx 694# - 73.75
We have numerous consignments for next
week. If we can help you market your
cattle, give us a call or stop by.
For information or for consianment
Ca" 995-4184 or
Joe Bell at 806-293-9193
PEREZ Lawn & Landscaping
Commercial • Residential • Mowing •
Overseeding • Edging • Scalping •
Detaching • Aerating • Sod Installation •
Fertilizing • Flower Bed Care • Rototilling
• Tree Trimming • Stump Removal •
Lot Mowing • Alley Cleaning
Phone 995-3146 or "
Mobile 1-806-662-5387
Pasi Perez
Cotton Marketing
from Plains Cotton Growers, Inc.
New agricultural spending totaling as much as $6 billion dollars over
four years has been announced as part of the House Budget Committee’s
$1.74 trillion spending proposal.
The $6 billion in additional spending authority for agriculture could
mean as much as $1J billion a year in additional funding for the crop
insurance program. House Agriculture Committee Chairman Larry Combest
(R- Lubbock), who has been outspoken in his desire to strengthen the
economic safety netforproducers, called the money a triumph for America’s
fanners.
The Senate Budget Committee is expected to pass a similar budget
resolution today. Thebudgetresolutions will actas ablueprint for discussion
and helps layout priorities for future legislative discussions.
Also on Capitol Hill today the House Agriculture Committee heard from
Secretary of Agriculture Dan Glickman on the status of disaster assistance
passed by Congress last Fall.
Both Combest and Rep. Charles Stenholm (D-Stamford) pointed out
their displeasure with USDA for the continuing delays in delivering the
remainder of the disaster assistance package approved by Congress.
“I am disheartened by thedelay in the delivery of this disaster assistance,
but let me make perfectly clear that this is not the fault of individuals in the
local offices,” said Ranking Democrat Charlie Stenholm (D-TX). “Hope-
fully this hearing will result in positive actions that will enable the [USDA]
personnel in the field to deliver disaster assistance to our farmers as quickly
as possible.”
^
With the end of the sales period for crop insurance ending March 15,
questions about how the program will work in 1999 are abundant.
One of the biggest concerns among producers is how newly enacted
changes to the late planting period will affect them. It appears that the
program will work much as it has in the and individual situations will
continue to be evaluated on a case by case basis.
PCG is seeking clarification on several different aspects of the program
and will communicate any definitive answers received to producers as they
are received. KFLP Confirms Increased Coverage on 900 AM
^ ^
Boosting its AM coverage area, Floydada radio station KFLP is rapidly
becoming a reliable source of up to date agricultural information. KFLP can
be found at 900 on the AM dial and at 95.3 FM.
KFLP recently reinstated broadcasts on its 900 AM station with a more
powerful transmitter that significantly expands the stations coverage area.
KFLP 900 AM can now be heard from the Amarillo area down as far as
portions of Dawson, Gaines, Howard, and Scurry counties in the south. East
to west KFLP reaches areas from as far away as Munday, Chillicothe and
Hollis, Oklahoma across to Muleshoc, Plains and past the New Mexico state
line at Texico, New Mexico.
KFLP’s return to the AM dial is good news for High Plains cotton
producers who have another reliable source they can turn to for market and
news information wherever they happen to be in the High Plains region.
KFLP provides regular market updates, reports from Plains Cotton
Growers, Inc. and a variety of guests that will include in coming weeks Billy
Dunavant of Dunavant Enterprises in Memphis, Tennessee, Mark Lange
from the National Cotton Council and regular visits from area legislators
such as Congressmen Larry Combest and Charles Stenholm.
Don’t Forget {! Plains Cotton Growers, Inc. 42nd Annual Meeting is -
scheduled for April 9, beginning at 8:30 a.m-. in the Lubbock Membrial Civic ’
Center Theater. The meeting is in 'conjunction with the'Tex'as Cdtfon '
Ginners’ Convention and Trade Show.
Tnank You For Reading The Tulia He• od
The market found little excitement
this week and appears locked in a
trading range in anticipation of
USDA’s March 30 Planting Inten-
tions Report. Old crop is still looking
to challenge the 63.50 level, but as
indicated one should tend to let go of
cotton on a serious challenge of that
level. The 1999-2000 new crop con-
tinues to focus on the combination of
legislation, USDA reports, and
weather. The upcoming week sug-
gests the trading range markets should
continue.
I was asked this week about selling
back the puts since there is a good
chance Congress may fund Step 2.
My response, “hold onto them
tightly.” Yes, we should know by
next week if Congress is able to at-
tach Step 2 funding to the emergency
bill worming its way through the
Senate. Yes, the legislation would be
beneficial. However, Step 2 funding
is only a small piece of the compli-
cated puzzle necessary to pull cotton
prices out of the doldrums.
Given the very adequate supply of
foreign cotton, coupled with the po-
tential fora 17 million bale US crop,
New York futures will find itdifficult
to maintain the current level. I hope
I am absolutely wrong, but the De-
cember contract continues to look
more like a loan price every day.
Thus, the reason for holding onto the
puts.
Additionally, I was asked, “Why
buy aputor fix my price now; you say
prices can only go another 7-8 cents
lower and that is loan level?”
“Why can’t we just get protection
from the loan and the LDP/POP?”
Granted, a 57-58 cent put will cost
more than 200 points and that lowers
your floor down to about56.50-57.00
cents, and that is nothing of which to
be proud! However, it does put you
five cents or more ahead of the game
should the market fall to the loan
level.
It is difficult to buy that put now,
after so much price deterioration has
occurred. You are risking 2-3 cents
and expecting to get back only 5-6
cents. Typically, one would like the
risk reward ratio to be better than
two-to-one.
Much of the dryland rolling plains
received moisture this week and that
will only serve to insure that acreage
gets planted. Portions of the high
plains received moisture as well.
Certainly it was beneficial, but was
very far from adequate. This is just
not a factor in the market yet, but
could be in another six to eight weeks.
The only hope for higher prices, in
the absence of demand, lies with
weather based production problems
andnogrowerwishesthatonanyone.
The acreage increase in the South-
west will be significant Further, Mid-
south and Southeastgrowers arc now
firmly suggesting a 3-5 percent in-
crease from last year. With normal
weather this market has all the possi-
bilities of the low 50 cent level.
*************11*
Don’t Forget!!
Plains Cotton Growers, Inc.
42nd Annual Meeting
April 9,1999 -- 8:30 a.m.
Lubbock Memorial Civic Center Theater
In Conjunction with the
Texas Cotton Ginners’ Convention and
Trade Show
* * * * * *1.,*,.* * * * * * * *>’'
Use Extreme Caution With Fire!
Remember To Tell Our Firemen How
Much They Are Appreciated!
FARM & RANCH BUSINESS DIRECTORY
Barbour Bros., Inc.
\lWwi 301 North Hwy 87 995-3366
Tulia, Texas
S
BRISCOE IMPLEMENT
TULIA
995-4065
SILVERTON
823-2486
Conservation
Protects Our Good Earth
Tulia Feedlot, Inc.
Phone 668-4731
Tulia, Texas
This Specs Now Available
For more Information please call 995-3535.
This Land is Our Land - Protect It Through
CONSERVATION
v Swisher Electric Cooperative
401 S.W. 2nd St. 995-3567
Tulia, Texas
To advertise in this space, please call
995-3535
ID-PLflinS
411 North Hale
995-3572
wm. ixwmwt twmwwt, iwc.j Tulia, Texas
Conservation
PROTECTS OUR QOOD EARTH
R&R Fertilizer & Spraying
North Hiway 8
995-2708
TULIA, TEXAS
| Ma
Manufacturing and Dist. Co.
Rt. 2 Box 25
Tulia, Texas 79088
668-4722
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The Tulia Herald (Tulia, Tex.), Vol. 90, No. 12, Ed. 1 Thursday, March 25, 1999, newspaper, March 25, 1999; Tulia, Texas. (https://texashistory.unt.edu/ark:/67531/metapth635708/m1/12/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Swisher County Library.