Improving Your Risk Management and Pricing Strategies

Long-term cotton market forecasts are indicating stronger prices.

While that optimism is needed and welcomed by many cotton growers across the country, there are additional ways you can improve your bottom line, even when prices may not be so bullish. I’m referring to a series of information-rich seminars related to “Cotton Price Risk Management and Pricing Strategies.”

Dr. Jeanne Reeves, our Ag division’s staff economist, is coordinating the Cotton Incorporated-sponsored seminars that will be held in Memphis, February 13; Coalinga, CA, March 26, and Lubbock, April 2.

She has secured some of our industry’s most respected agricultural economists and cotton analysts as instructors and speakers including, Dr Carl Anderson, Dr. O. A. Cleveland, Dr. John Robinson, Jarral Neeper with CALCOT and Kelli Merritt from CropMark, Inc. Growers can benefit from the speakers’ years of experience and hear how to improve price-risk management and pricing strategies.

Although risk management and pricing strategies can be difficult subject matter, these seminars will offer both basic and intermediate workshops on using options on futures to manage price risk. Contact Kay Wriedt at 919-678-2271 to register and I wish you much success in 2008 with your marketing and cotton growing efforts.

MarketNews

Armijo Wins Technology Transfer Award
Starting out his ag-engineering career as an aspiring student in 1979 at the USDA-ARS Southwestern Cotton Ginning Research Lab in Mesilla Park, NM, Carlos Armijo continues to be a student to innovation.

Armijo traveled to Washington, DC, in January to be recognized as one of the winners of the 2007 Technology Transfer Awards.

In the “Superior” division, Armijo is being awarded for excellence in the transfer of high-speed roller-ginning technology to the cotton ginning industry. To be eligible for this award, the technology or product must be commercially available or must have been adopted and widely used by farmers.

“I have a passion for improving ginning technologies, really enjoy the work, I do, and I and am very appreciative of this award,” said Armijo. The award will be presented by Edward Knipling, Administrator of ARS, at the ARS Annual Recognition Program on February 12.

Sheely Named Cotton Incorporated Chairman
California cotton grower Ted Sheely is the new Chairman of Cotton Incorporated.

Owner of Ted Sheely Farms in Lemoore, CA, Sheely is no stranger to cotton or farming innovation. His farm has been the proving ground for countless technologies including spatial imaging and precision agriculture.

He is a past National Cotton Council Director, past president of the King County Farm Bureau and participated in the California Ag Leadership Program from 1980-1982.

Sheely will serve a two-year term as Chairman. “I am honored to be Chairman of Cotton Incorporated and look forward to working with our board to further advance cotton’s market position across the globe,” said Sheely.

On his farms, Sheely currently grows Upland and Pima cottons, tomatoes, wheat, pistachios, garlic, grapes, safflower, barley and triticale.

He is married to his wife of 33 years, Deborah Miller Sheely, and they have three children – Zachary, Benton and Jacob.

Captions:

Carlos Armijo

Ted Sheely

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Marketing Stories
Market Analysis

Market Struggles with Black Swans and Bears

January 26, 2015

Although the bears have finally pulled prices into the 50s, the ability of old crop cotton to hold near the 60 cent level is phenomenal, given the current “Black Swan” financial market.

Market Analysis

Shurley on Cotton: Prices Struggle as New Round of Weakness Sets In

January 26, 2015

For the fourth time since last spring, prices have again failed to hold support as new negative forces overtake the market. The decline in prices is concerning, but is offset somewhat by a strong basis and premiums for quality and an increasing LDP/MLG.

Market Analysis

Plexus: Price Reacting to Non-Cotton Issues

January 16, 2015

Negative vibes from outside markets are overshadowing fairly constructive developments on the cotton front.

Marketing

Cotton Inc. Risk Management Seminar Coming to Memphis

January 14, 2015

Cotton Incorporated will conduct its Cotton Price Risk Management Seminar on February 10 in Memphis, TN.

Market Analysis

Shurley on Cotton: Prices Just Treading Water

January 13, 2015

Recent activity has simply solidified the sideways pattern this market has been in for quite a while.

Market Analysis

Cotton Holds Its Own Amid Call for Lower Prices

January 11, 2015

Despite spending the week in positive territory, the market was thinly traded, but closed slightly higher and withstood the increasing value of the U.S. dollar. That’s a win for cotton, as it held its own despite a widespread call for lower prices.

News

New Cotton Board Appointments Announced

January 9, 2015

Agriculture Secretary Tom Vilsack has appointed 12 members and 12 alternate members to serve three-year terms on the Cotton Board.

Around The Gin
Product News

Deltapine to Release Five Bollgard II XtendFlex Cotton Varieties

January 27, 2015

Following USDA deregulation of the Bollgard II XtendFlex cotton technology, Deltapine has announced plans to offer five new B2XF varieties for the 2015 season.

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Bollgard II XtendFlex Cotton Poised for Limited Introduction

January 21, 2015

A limited introduction of Bollgard II XtendFlex cotton varieties is planned for the 2015 planting season through Deltapine and select licensees.

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USDA Deregulates Dicamba-Tolerant Technologies for Cotton and Soybeans

January 16, 2015

The USDA has announced its decision to deregulate Bollgard II XtendFlex cotton and Roundup Ready 2 Xtend soybeans – Monsanto’s dicamba-tolerant trait technologies for those crops.

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Bayer CropScience Anticipates Registration for New Cotton and Peanut Insecticide

January 15, 2015

Bayer CropScience anticipates the registration of Velum Total, the company’s newest insecticide/nematicide, for the 2015 cotton and peanut season in the Southeast.

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New FiberMax and Stoneville Varieties for 2015 Feature GLT Technology

January 14, 2015

Bayer CropScience has announced four new FiberMax and Stoneville cotton varieties for the 2015 season.

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PhytoGen Introduces 2015 Cotton Varieties

January 13, 2015

PhytoGen’s cottonseed portfolio for 2015 includes proven high yielding varieties, as well as new varieties featuring advanced insect, nematode and disease technologies.

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Monsanto and FMC Renew and Broaden Crop Protection Agreement

January 8, 2015

Monsanto and FMC have agreed to extend and broaden their current relationship to help benefit cotton, corn and soybean growers through Roundup Ready PLUS Crop Management Solutions.

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Deltapine Announces Class of 15 Cotton Varieties

December 16, 2014

Deltapine has announced two new high-yielding cotton varieties for its Class of 15, with several potential varieties awaiting regulatory approvals of the Bollgard II XtendFlex technologies.

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Market Analysis

Shurley on Cotton: Prices Struggle as New Round of Weakness Sets In

January 26, 2015

For the fourth time since last spring, prices have again failed to hold support as new negative forces overtake the market. The decline in prices is concerning, but is offset somewhat by a strong basis and premiums for quality and an increasing LDP/MLG.

Market Analysis

Market Struggles with Black Swans and Bears

January 26, 2015

Although the bears have finally pulled prices into the 50s, the ability of old crop cotton to hold near the 60 cent level is phenomenal, given the current “Black Swan” financial market.

Market Analysis

Plexus: Get Ready for a Few Weeks of Volatility

January 23, 2015

While the market situation for U.S. cotton may seem friendly, it is being overshadowed by the negative outlook for commodities stemming from a strong dollar, lower economic growth and fears of another financial meltdown.

Market Analysis

Bears Are Growling, but Market Holds Firm

January 19, 2015

The fifty-centers are still out there and are beginning to beat their drums louder and louder, but the current trading range has proven to be most resilient.

Market Analysis

Plexus: Price Reacting to Non-Cotton Issues

January 16, 2015

Negative vibes from outside markets are overshadowing fairly constructive developments on the cotton front.

Marketing

Cotton Inc. Risk Management Seminar Coming to Memphis

January 14, 2015

Cotton Incorporated will conduct its Cotton Price Risk Management Seminar on February 10 in Memphis, TN.

Market Analysis

Shurley on Cotton: Prices Just Treading Water

January 13, 2015

Recent activity has simply solidified the sideways pattern this market has been in for quite a while.

Market Analysis

Cotton Holds Its Own Amid Call for Lower Prices

January 11, 2015

Despite spending the week in positive territory, the market was thinly traded, but closed slightly higher and withstood the increasing value of the U.S. dollar. That’s a win for cotton, as it held its own despite a widespread call for lower prices.

News

New Cotton Board Appointments Announced

January 9, 2015

Agriculture Secretary Tom Vilsack has appointed 12 members and 12 alternate members to serve three-year terms on the Cotton Board.

Market Analysis

Plexus: Price Drop Pushes Market Back Into Sideways Mode

January 5, 2015

Recent price drops erased all gains from the previous nine sessions in one fell swoop, moving the market back into the 58-61 cents sideways range from which it tried to escape.

Market Analysis

Shurley on Cotton: Looking Back and Looking Ahead

December 24, 2014

It’s not news that 2014 turned out to be a disappointing year for many growers. I’m somewhat optimistic on the price outlook for 2015, but I don’t see much reason to start contracting for anything yet.

Market Analysis

Current Market Level Holding Its Ground

December 19, 2014

The market’s ability to hold its current level has overshadowed the fact that cash prices around the world have firmed a bit, signaling a stronger basis position for most growths.

Market Analysis

Plexus: Slight Upward Bias in a Sideways Market

December 19, 2014

The market appears to be holding in a sideways to slightly higher range between 59 and 63 cents. But don’t rule out spikes to higher levels on spec short covering.

Market Analysis

Market Bumps Up on News of Smaller U.S. Crop Numbers

December 15, 2014

USDA’s lower projections for U.S. cotton production should strengthen the current global demand shift in favor of U.S. cotton. The implication is a relative higher price.

Market Analysis

Cotton Market is Ripe for a Rally

December 5, 2014

Current price consolidation activity has helped uncover excellent demand. A short covering rally could possibly be triggered sooner than later.