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

Shurley: Demand Is Key to Price Strength and Stability

November 21, 2017

Demand is the key to cotton's future. We still have a way to go, but the outlook has certainly improved.

Market Analysis

Cleveland: Yields, Quality, Consumption Still Rising

November 4, 2017

Reports of high yields, premium quality and growing consumption are keeping prices at the higher end of the trading range.

Market Analysis

India and Frost Combine to Prop Up Market

October 27, 2017

India’s plan to keep more of its cotton for domestic use, plus a potential freeze in West Texas, propped up the market during the past week.

Market Analysis

Bears Growling on Harvest and Demand Challenges

October 22, 2017

Although current trading activity represents a bearish price outlook, Dr. O.A. Cleveland still believes the 65 cent price support will hold. . .even though more experts are abandoning that position.

Market Analysis

Shurley: October Numbers Not As Expected, But Prices Hold

October 18, 2017

USDA’s October production and supply and demand estimates are like apples – pick and choose and you’ll find some numbers you like...and some you won’t.

Market Analysis

Trying to Read the Market: Bearish, Neutral or Bullish?

October 13, 2017

After finding USDA’s October WASDE report initially bearish and somewhat neutral, cotton prices went mildly bullish thinking about stronger demand and the real size of the U.S. and foreign crops.

Market Analysis

Examining Loan Program and Rate Changes for 2017

October 9, 2017

Dr. Don Shurley provides an analysis of what changes in the marketing assistance loan for 2017 could mean for cotton growers.

Around The Gin
Product News

Bayer Looking for FiberMax One Ton Club Growers for 2017

November 16, 2017

Cotton growers who produce an average of 2,000 lb/A on 20 or more acres planted to FiberMax varieties in 2017 are eligible to be part of the 13th annual FiberMax One Ton Club.

Product News

Monsanto Delays NemaStrike for Additional Review

November 2, 2017

After finding cases of skin irritation, Monsanto is pulling its nematode seed treatment NemaStrike for further product review.

Product News

Intrepid Trio: Naturally Balanced Nutrition in Every Granule

November 1, 2017

Intrepid Trio contains three essential nutrients for cotton plants.

Product News

Save Time, Increase Efficiencies with Mixmate

November 1, 2017

Mixmate from Praxidyn is a precision chemical mixing system for small farms to large enterprises.

Product News

Crumpler Ironworks & Fabrication

November 1, 2017

Crumpler Ironworks & Fabrication is committed to providing the highest level of service, honesty and integrity, regardless of project size.

Product News

Delivering Proven Performance Across the Cotton Belt

November 1, 2017

Seed varieties, traits and crop protection products from Bayer deliver proven performance to growers across the Cotton Belt.

Product News

Growers Continue to Count on Americot and NexGen

November 1, 2017

Americot is dedicated to working with cotton growers throughout the Cotton Belt to provide elite performing NexGen varieties within the marketplace.

Product News

Deere Adds New Narrow Track Versions to 9RX Tractor Lineup

November 1, 2017

John Deere has added three new 9RX Narrow Track Tractors, expanding its lineup of high-horsepower machines.

Latest News
Market Analysis

Shurley: Demand Is Key to Price Strength and Stability

November 21, 2017

Demand is the key to cotton's future. We still have a way to go, but the outlook has certainly improved.

Market Analysis

U.S. Sales Booming to Meet Bullish Demand

November 17, 2017

Cotton appears to be caught in a battle between supply and supply. And that keeps prices well positioned to stay where they are.

Market Analysis

Increased Cotton Demand Moving the Market

November 11, 2017

A bullish supply demand report for November proves that demand moves markets. And demand for cotton has resurfaced.

Market Analysis

Cleveland: Yields, Quality, Consumption Still Rising

November 4, 2017

Reports of high yields, premium quality and growing consumption are keeping prices at the higher end of the trading range.

Market Analysis

India and Frost Combine to Prop Up Market

October 27, 2017

India’s plan to keep more of its cotton for domestic use, plus a potential freeze in West Texas, propped up the market during the past week.

Market Analysis

Bears Growling on Harvest and Demand Challenges

October 22, 2017

Although current trading activity represents a bearish price outlook, Dr. O.A. Cleveland still believes the 65 cent price support will hold. . .even though more experts are abandoning that position.

Market Analysis

Shurley: October Numbers Not As Expected, But Prices Hold

October 18, 2017

USDA’s October production and supply and demand estimates are like apples – pick and choose and you’ll find some numbers you like...and some you won’t.

Market Analysis

Trying to Read the Market: Bearish, Neutral or Bullish?

October 13, 2017

After finding USDA’s October WASDE report initially bearish and somewhat neutral, cotton prices went mildly bullish thinking about stronger demand and the real size of the U.S. and foreign crops.

Market Analysis

Examining Loan Program and Rate Changes for 2017

October 9, 2017

Dr. Don Shurley provides an analysis of what changes in the marketing assistance loan for 2017 could mean for cotton growers.

Market Analysis

Prices Still Sideways as Bearish Moods Grow

October 6, 2017

The market is watching weather and waiting for USDA’s October report. But bearish signs are starting to surface in some segments.

Market Analysis

Cleveland: Market in Hang On and Wait Mode

October 1, 2017

Cotton prices are holding without clear direction right now, as the market continues to watch USDA projections and harvest conditions for answers.

Market Analysis

Lower Chinese Stocks, Higher Polyester Prices Offer Market Hope

September 22, 2017

The market is holding steady, thanks again to China. Their Reserve auction has reduced cotton stocks and bumped consumption. And now, polyester prices are rising as the Chinese trim production.

Promotion

Cotton Board Opens Contest for Calendar Photos

September 20, 2017

The Cotton Board is looking for photo entries for the organization’s 2018 Industry Calendar. There will be prizes.

Market Analysis

USDA Spins Market with Record Supply-to-Use Ratio

September 15, 2017

Hurricanes were but a mere hiccup for the world and U.S. crops. Instead, USDA spun some record-setting numbers that left the market dizzy.

Promotion

Key Global Customers to See “The Cotton the World Trusts”

September 15, 2017

Textile manufacturing executives from 15 countries will visit the U.S. Cotton Belt September 25-29 for the 40th COTTON USA Orientation Tour sponsored by Cotton Council International.