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 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

Plexus: Market Showing Signs of Life

December 5, 2014

After closing the previous 14 sessions in a very tight price band, March cotton started to break out to the upside, boosted by a firmer cash market and possible spec buying.

Market Analysis

I Mean It This Time. The Bottom Is In.

November 24, 2014

I said it at 61/62 cents, so I’d best say it for 57 cents. The bottom is in.

Promotion

Sourcing USA Summit Strengthens Global Partnerships

November 21, 2014

The recent COTTON USA Sourcing USA Summit brought representatives from global sourcing companies together with the U.S. cotton industry to discuss the advantages of U.S.-grown cotton.

Market Analysis

Plexus: Spec Movement Reveals Downside of Sideways Market

November 17, 2014

The recent trading action that pushed cotton prices into the 50s is linked to the interplay of spec short covering and spec long liquidation, which should keep the market in its current sideways trend.

Market Analysis

Shurley on Cotton: November Numbers Mostly Neutral, Prices Hold

November 11, 2014

USDA’s November crop production and supply/demand numbers are little changed from the October numbers.

Market Analysis

Prices Still on the Path to Nowhere

November 7, 2014

Cotton prices continued their path to nowhere and are expected to continue the same back and forth trading action, reinforcing the thought that the market has bottomed out.

Around The Gin

Product News

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.

Precision Technology

NORAC Hybrid Mode Receives U.S. and European Patent Approval

December 8, 2014

NORAC Systems International Inc.’s Hybrid Mode in-crop spraying feature has received patent approval in the U.S. and Europe.

Product News

Americot Adds Another High Yielder for 2015

November 24, 2014

Americot rode to success on the performance of two top varieties in 2014. For 2015, the company is adding another workhorse variety to the stable.

Product News

CROPLAN a Brand to Watch for 2015

November 21, 2014

Growers familiar with CROPLAN corn and soybean varieties in the South may want to keep an eye on the company’s cotton program, too.

Product News

Deltapine Focused on Raising the Yield Bar in 2015

November 17, 2014

No brand of cotton seed was planted on more acres in 2014 than Deltapine. So it stands to reason that the company’s variety researchers are preparing to introduce monumental changes to their seed lineup in 2015.

Product News

Growth Continues for Dyna-Gro and All-Tex

November 13, 2014

Crop Production Services has put a two brand approach in place for its Dyna-Gro and All-Tex brands of cotton. And their varieties are getting stronger each year.

Product News

PhytoGen Gaining Foothold in West Texas Market

November 12, 2014

In a year that saw PhytoGen introduce several new varieties to the Cotton Belt, an old standard once again stole the headlines as the company looks to gain more of the Southwest market.

Product News

Monsanto, Sumitomo and Valent Extend Crop Protection Partnership

November 10, 2014

Monsanto, Sumitomo Chemical and Valent U.S.A. have agreed to extend their strategic partnership in Monsanto’s Roundup Ready PLUS Crop Management Solutions platform for U.S. cotton and soybeans.

Latest News

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.

Market Analysis

Plexus: Market Showing Signs of Life

December 5, 2014

After closing the previous 14 sessions in a very tight price band, March cotton started to break out to the upside, boosted by a firmer cash market and possible spec buying.

Market Analysis

Shurley on Cotton: New Round of Weakness Sets In

November 25, 2014

Merchants are now pricing cotton basis the March 2015 futures contract. But March futures – and all prices – are showing a new round of weakness.

Market Analysis

I Mean It This Time. The Bottom Is In.

November 24, 2014

I said it at 61/62 cents, so I’d best say it for 57 cents. The bottom is in.

Promotion

Sourcing USA Summit Strengthens Global Partnerships

November 21, 2014

The recent COTTON USA Sourcing USA Summit brought representatives from global sourcing companies together with the U.S. cotton industry to discuss the advantages of U.S.-grown cotton.

Market Analysis

Plexus: Spec Movement Reveals Downside of Sideways Market

November 17, 2014

The recent trading action that pushed cotton prices into the 50s is linked to the interplay of spec short covering and spec long liquidation, which should keep the market in its current sideways trend.

Market Analysis

Shurley on Cotton: November Numbers Mostly Neutral, Prices Hold

November 11, 2014

USDA’s November crop production and supply/demand numbers are little changed from the October numbers.

Market Analysis

Prices Still on the Path to Nowhere

November 7, 2014

Cotton prices continued their path to nowhere and are expected to continue the same back and forth trading action, reinforcing the thought that the market has bottomed out.

News

Texas Tech Program Wins Cotton Inc. Grant

November 3, 2014

Students in Texas Tech’s Retail Management program will get an in-depth look at cotton in their curriculum, thanks to an educational grant from Cotton Incorporated.

Market Analysis

Prices Hint That the Market Bottom Is In

November 3, 2014

Goblins may continue to haunt the cotton market past the Halloween holidays. But the market is giving more signals that the bottom is in.

Marketing

Don’t Hate the Futures. Hate the Fundamentals.

November 1, 2014

Cotton producers could learn a lot from – of all things – the onion market.

Market Analysis

With WTO Brazil Settled, Cotton Casts a Wary Eye on Chinese Policy

October 31, 2014

With the conclusion of the WTO Brazil case, the U.S. cotton industry can bring a renewed focus to the challenges ahead, coming from a familiar source.

Market Analysis

Shurley on Cotton: Lackluster Week Closes on a High Note

October 27, 2014

An end of week uptick closed the market up 81 points from the previous week. But the longer-term direction is still sideways, with a range of mostly 62 to 67 cents.

Market Analysis

Same Song, Same Tune – Market Sings the Low-to-Mid 60s Blues

October 24, 2014

The same record that has been spinning for weeks is still playing. The 61 to 62 cent price resistance holds firm, attempts to close above 65 cents continue to be thwarted, and the potential for a short covering rally lingers strong in the background.