NCC Board Gets Updates On Key Issues

NCC officers and directors along with other industry leaders attending the NCC’s Mid-Year Board meeting in Memphis were updated on key issues affecting the industry and the outlook, including economic opportunities and regulatory challenges.

NCC Chairman Eddie Smith’s report provided some details of his trips to Washington this year, which had a primary focus on key environmental issues, the WTO Brazil dispute and the ’12 farm bill debate. Smith said the gravity of these challenges underscored the need for the support and active leadership of the entire cotton industry. Increased financial support for the NCC and more involvement by industry members are top priorities for leaders in Texas and other areas of the Cotton Belt. Recent efforts in Texas, which included three regional producer-ginner conferences, have resulted in 14 new gin members with a total estimated annual average volume of more than 450,000 bales.

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In highlighting Cotton Council International’s (CCI) many export promotion activities, Smith also noted that CCI had partnered with the NCC and Cotton Foundation again this year for another leadership exchange trip to China in early September. NCC Vice Chairman Charles Parker will be the delegation’s leader and his leadership team will include Richard Kelley, Shawn Holladay, David Dunlow, Kirk Gilkey and Mike Quinn. NCC Vice President Harrison Ashley will accompany the group.

Regarding China, NCC Vice President Gary Adams, in his economic outlook, told attendees that the world’s top consumer of cotton may import a large amount of the fiber in a campaign to replenish state reserves driven down by a series of official cotton auctions. He reported that USDA’s current projection for China’s imports of 12.5 million bales in ’10/11 may prove to be conservative. He said total Chinese cotton state stocks were depleted as state cotton auctions sold almost 15 million bales in 16 months to curb rising domestic prices.

“At some point, they will want to go back and rebuild those reserves,” Adams said. “It all points to more imports by China through 2010.”

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Adams said Pakistan, where the cotton crop was hit hard by sweeping floods, also may need to import more cotton. The USDA already has reduced its estimate of cotton production in Pakistan to 9.5 million bales from 10.2 million, but kept the forecast for imports steady at 2.3 million bales. He said the situations in China and Pakistan and continuing restrictions on India’s cotton exports could push US cotton exports above 15 million bales.

Regarding this season’s US crop, Adams was optimistic as USDA’s latest numbers show that 62% of that crop was rated good to excellent. He said that although the percentage of poor to very poor has been increasing in the Southeast in the last few weeks, overall “this is shaping up to be a very good crop.”
 

Source: National Cotton Council

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