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 on Cotton: More Tariff Talk

April 9, 2018

The jury is still out on whether or not the “verbal war” between the U.S. and China will actually result in tariffs, and what the impact on cotton will be.

Auto Draft
Marketing

USDA Announces 2018 Loan Rate Differentials

April 17, 2018

USDA’s Farm Service Agency has announced the 2018-crop loan rate differentials for upland and extra-long staple cotton.

Market Analysis

Strong Demand, Drought Concerns Pushing Prices

April 14, 2018

Thanks to mill demand, shrinking quality stocks and increased drought concerns in the Southwest, cotton continues to post gains in spite of the selling pressure created by rolling positions to the July contract.

Promotion

Branding is Key Marketing Tool for U.S. Cotton

April 10, 2018

Brands mean trust, which sells products, and cotton is no exception.

don shurley
Market Analysis

Shurley: This is Now USDA’s Number for Cotton

April 1, 2018

In my opinion, USDA’s March 30 Prospective Plantings report gets us much closer to what will eventually be the acres planted number.

Young Cotton Plant
Market Analysis

Cleveland: Start Pricing This Year’s Crop

March 24, 2018

Plant, plant, plant continues to be the motto. But it’s also time to add price, price, price to the discussion.

Promotion

JCPenney Joins Cotton LEADS Program

March 22, 2018

JCPenney is demonstrating its commitment to sustainability by joining the Cotton LEADS program.

Around The Gin
Product News

FiberMax Honors One Ton Club Growers for 2017

April 17, 2018

The FiberMax One Ton Club recently honored 188 cotton growers who qualified for the club with their 2017 harvest results.

Product News

BASF Adds Engenia Spray Tool to Aid Applications

April 16, 2018

A new easy-to-use resource puts critical weather requirements for applying Engenia herbicide in one convenient location.

Product News

Reduce Timing Guesswork for Cotton Planting

April 16, 2018

Bayer’s online Cotton Planting Forecasting tool can help growers determine the optimal planting window to improve their chances at securing a strong stand.

Product News

Deltapine NPE Program Begins Class of 19 Evaluations

April 9, 2018

Nine Class of 19 variety candidates will be in growers’ fields this year as the Deltapine New Product Evaluator (NPE) Program kicks off its eleventh season.

Product News

Americot Expands Research and Sales Teams

April 5, 2018

Americot has added six new team members to the company’s research and sales staffs.

Product News

Greenleaf Introduces TipGuard Nozzle System

April 5, 2018

Greenleaf Technologies has introduced its new TipGuard System to protect spray tips from contact damage.

Product News

New BASF Reward Program for AR Growers Facing Dicamba Ban

March 27, 2018

BASF has revised its Grow Smart Rewards program to provide Arkansas growers alternative weed control solutions during the dicamba application ban from April 16 through October 31.

Product News

DuPont Vydate Products Fully Available for 2018

March 15, 2018

DuPont Vydate brand insecticide/nematicide products – including Vydate C-LV for cotton – will be fully available for sale and use during the 2018 growing season.

Latest News
Marketing

USDA Announces 2018 Loan Rate Differentials

April 17, 2018

USDA’s Farm Service Agency has announced the 2018-crop loan rate differentials for upland and extra-long staple cotton.

Market Analysis

Strong Demand, Drought Concerns Pushing Prices

April 14, 2018

Thanks to mill demand, shrinking quality stocks and increased drought concerns in the Southwest, cotton continues to post gains in spite of the selling pressure created by rolling positions to the July contract.

Promotion

Branding is Key Marketing Tool for U.S. Cotton

April 10, 2018

Brands mean trust, which sells products, and cotton is no exception.

Market Analysis

Shurley on Cotton: More Tariff Talk

April 9, 2018

The jury is still out on whether or not the “verbal war” between the U.S. and China will actually result in tariffs, and what the impact on cotton will be.

Market Analysis

Market Holds in Face of Tariff Rumblings

April 8, 2018

World consumption continues to support prices, but the mere suggestion of tariffs makes speculative fund managers nervous and increases market volatility.

Market Analysis

Cleveland: Prices Rally on USDA Acreage Report

April 1, 2018

USDA’s annual Prospective Plantings report pleasantly surprised the market, as seen by the price rally for cotton following the report’s release.

Market Analysis

Shurley: This is Now USDA’s Number for Cotton

April 1, 2018

In my opinion, USDA’s March 30 Prospective Plantings report gets us much closer to what will eventually be the acres planted number.

Market Analysis

Cleveland: Start Pricing This Year’s Crop

March 24, 2018

Plant, plant, plant continues to be the motto. But it’s also time to add price, price, price to the discussion.

Promotion

JCPenney Joins Cotton LEADS Program

March 22, 2018

JCPenney is demonstrating its commitment to sustainability by joining the Cotton LEADS program.

Market Analysis

Demand, Weather Concerns Driving Strong Trade

March 16, 2018

The market seldom sees a three-year price stream so favorable.

Market Analysis

Shurley: Pulling the Trigger on the 2018 Crop

March 16, 2018

Producing a cotton crop ultimately commits you to also sell the crop. But at what point do you say the price is “good enough?”

Market Analysis

Multiple Factors Driving Cotton’s Price Growth

March 9, 2018

The fundamentals of supply and demand – among other factors – continue to drive cotton prices toward the high 80s.

Promotion

Cotton Inc. Technologies at Play in Kids’ Clothing

March 8, 2018

Several well-known brands and retailers are offering new product lines featuring technologies developed by Cotton Incorporated.

Marketing

NCC: Senate Confirms Key USTR Nominees

March 6, 2018

The NCC and other commodity organizations support the Senate confirmation of three key officials in the Office of the U.S. Trade Representative.

Market Analysis

The Market’s Advice: Plant, Plant, Plant!

March 4, 2018

As world and U.S. ending stocks continue to shrink, growers have an opportunity to price the 2018 crop in the low 80s.