facebook_pixel

Shipping Cotton Quickly and in Good Faith

From Cotton Grower Magazine – July 2014

 

The relationship between cotton shippers and warehouses dates back to the beginnings of the cotton industry. But what was once written on a blackboard or sealed by a handshake has been swept away by a rapidly moving global industry. Time and communication – or the lack thereof – has often become a sticking point in today’s movement of cotton.

Like other segments of the U.S. cotton industry, warehousing has seen its share of transition and change.

“In 2006, when the Performance and Standards Task Force was created for the industry, there were roughly 420 cotton warehouses with cotton storage agreements,” said Dale Thompson, manager, Marketing and Processing Technology for the National Cotton Council. “Today, that number sits at approximately 350 warehouses. Although we’ve seen a net decline in the number of warehouses, capacity is relatively unchanged. We can still handle a large crop.”

Thompson noted that the warehousing segment had to adjust from servicing a domestic textile industry that wanted consistent, running shipments throughout the year to servicing an export market made up of windows for movement of several million bales of cotton at a time. That, he said, puts pressure on all parts of the industry, particularly the transportation and warehousing sector.

“You can get cotton scheduled to ship,” he added. “But if the trucks aren’t there, it backs everything up through the system. Everything today is geared toward being able to provide service on an as needed basis. The challenge comes in handling those peaks.”

Several good electronic calendars and scheduling tools are available today, and most warehouses rely on them to help manage shipping requests based on supply and available transportation. One of the newer systems – Batch 23 from EWR, Inc. – is now being enhanced to capture all orders and load dates requested by shippers and the earliest available load dates offered and provided by warehouses to allow USDA a way to monitor activity without relying on standard weekly shipping reports from warehouses.

“Batch 23 has been in place for three years,” said Thompson. “It was developed at the request of the cotton industry, but what has not been in place is the ability to capture and store requested and offered shipment dates. The NCC has agreed to underwrite the cost of developing these additions to the software. Shippers will now be able to see information on all of their shipping orders at warehouses. The warehouses can see information on offered and actual shipping dates. And USDA can monitor it all.”

This information will allow USDA and warehouse examiners to make sure all parties involved are operating in good faith to move cotton as quickly as possible.

USDA will focus on actual shipping activity. The shipping standard in the Cotton Storage agreement requires warehouses to ship at least 4.5 percent of their available inventory each week. There’s risk involved for warehouse operators found to be delaying shipments or not meeting other terms of the shipping standard may receive notices of violation or lose the ability to store Commodity Credit Corporation loan-eligible cotton.

Topics: , ,

Leave a Reply

Marketing Stories
Market Analysis

With Market Oversold, Is Bullish Return Near?

July 14, 2017

The cotton invert continues, as both the U.S. and Australian crops are oversold.

Market Analysis

Rain in India, U.S. Keeps Pressure on Prices

July 7, 2017

Beneficial rains in the U.S. and India kept pressure on cotton prices, as the December futures contract settled the past week unchanged.

Market Analysis

Bulls Push Market on Heels of USDA Planting Report

July 5, 2017

Smaller than expected U.S. cotton plantings – and the potential smaller crop – caught the bulls’ attention in the market.

white ripe cotton field ready for harvest
Promotion

Wrangler Joins Field to Market Sustainability Efforts

June 30, 2017

Wrangler is the first apparel brand to join the sustainable agriculture alliance.

Promotion

Cotton LEADS Adds HUGO BOSS to Partner Ranks

June 29, 2017

Global fashion house HUGO BOSS is the newest member of the Cotton LEADS program.

Market Analysis

Market Catching Its Breath After 10-Day Slide

June 23, 2017

After an unprecedented 10-day drop in prices, the market is trying to catch its breath.

Market Analysis

Mother Nature, Not Bulls, Managing the Market

June 16, 2017

Cotton prices took a big hit, and bullish signals are hard to find. Mother Nature is now in charge.

Around The Gin
Product News

Protect Cotton Potential from Weeds, Worms and Diseases

July 12, 2017

Southeast cotton producers say latest technologies from PhytoGen help protect yield and quality.

Product News

Monsanto “Troubled” by Arkansas Dicamba Decision

June 26, 2017

Monsanto has weighed in on the Arkansas Plant Board’s proposed ban of dicamba use in the state.

Product News

Drexel Adds Two Regional Sales Reps

June 16, 2017

Kyle Herring and David Davis have joined Drexel Chemical Company as regional sales representatives.

Product News

Dow AgroSciences Launching Enlist Corn in 2018

June 16, 2017

Following the launch of Enlist cotton, Dow AgroSciences will make Enlist corn commercially available for 2018 after receiving Chinese import approvals.

Product News

Transform Earns Section 18 Exemptions for Cotton, Sorghum

May 4, 2017

Transform WG insecticide has received Section 18 emergency use exemptions for use in cotton and sorghum in select states for the 2017 production season.

Product News

EPA Approves Monsanto’s NemaStrike Technology

May 2, 2017

The EPA has issued registration for tioxazafen, a new nematicide from Monsanto that will be branded as NemaStrike Technology for nematode control and yield protection in cotton, corn and soybeans.

Product News

Indigo Partners Launched for In-Field Technology Testing

April 25, 2017

Indigo is launching Indigo Partners, a collaboration of 25 U.S. growers and agronomic experts to test agricultural technologies – including Indigo’s microbial seed treatments – during 2017.

Product News

UPI Adds New Herbicide Products

April 14, 2017

UPI has added two new herbicides to its portfolio of high quality crop protection products for the U.S.

Latest News
Market Analysis

With Market Oversold, Is Bullish Return Near?

July 14, 2017

The cotton invert continues, as both the U.S. and Australian crops are oversold.

Market Analysis

Shurley: Prices Continue to Flounder in Lower Range

July 14, 2017

The July USDA crop production and supply and demand estimates report was not bad, but prices continue to show no improvement.

Market Analysis

Rain in India, U.S. Keeps Pressure on Prices

July 7, 2017

Beneficial rains in the U.S. and India kept pressure on cotton prices, as the December futures contract settled the past week unchanged.

Market Analysis

Shurley on Cotton: Where Did the Acres Go?

July 6, 2017

Dr. Don Shurley says the recent USDA Planted Acreage report did not deliver as expected, making times a bit confusing for producers looking to manage risk.

Market Analysis

Bulls Push Market on Heels of USDA Planting Report

July 5, 2017

Smaller than expected U.S. cotton plantings – and the potential smaller crop – caught the bulls’ attention in the market.

Promotion

Wrangler Joins Field to Market Sustainability Efforts

June 30, 2017

Wrangler is the first apparel brand to join the sustainable agriculture alliance.

Promotion

Cotton LEADS Adds HUGO BOSS to Partner Ranks

June 29, 2017

Global fashion house HUGO BOSS is the newest member of the Cotton LEADS program.

Market Analysis

Market Catching Its Breath After 10-Day Slide

June 23, 2017

After an unprecedented 10-day drop in prices, the market is trying to catch its breath.

Market Analysis

Mother Nature, Not Bulls, Managing the Market

June 16, 2017

Cotton prices took a big hit, and bullish signals are hard to find. Mother Nature is now in charge.

Promotion

USDA Seeks Cotton Board Nominees

June 15, 2017

USDA is seeking nominations for candidates to fill 13 member and 13 alternate positions on the Cotton Board.

Market Analysis

Shurley: June Report Sends Mixed Signals

June 15, 2017

USDA’s June WASDE report contained some good news and some bad news. Overall, Dr. Don Shurley considers the report somewhat bearish.

Market Analysis

Report Softens Prices, Consumption Concerns Rise

June 9, 2017

USDA’s June WASDE report sent old crop and new crop prices lower at week’s end, as manmade fibers take aim at cotton.

Promotion

Analysis Shows Value of Cotton Research & Promotion Program

June 7, 2017

A recent analysis of the Cotton Research & Promotion Program has shown that the Program provides strong, positive returns to cotton producers and importers.

Market Analysis

Sleepy Market Watching U.S. Crop Progress

June 3, 2017

The cotton market snoozed all week, watching crop development and holding solid at 72-73 cents for new crop December.

Market Analysis

Shurley: Prices Weaker but Remain Above Support

May 31, 2017

As growers complete planting and move fully into the growing season, evaluating the outlook and making price risk management decisions will be crucial.