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Among the threats to the profitability of U.S. cotton is China, the 800-pound gorilla in the global cotton industry. China's cotton stockpiles total more than 50 million bales, or 60 percent of global cotton stocks.
Calcot Limited cotton cooperative leadership includes, from left, Chairman Ron Rayner, Goodyear, Ariz.; Director Greg Wuertz, Coolidge, Ariz.; and President Jarral Neeper, Bakersfield, Calif.
On the price side, Calcot closed out its Seasonal Pool with final Upland prices reaching up to 80.05 cents in the desert to 96.70 for SJV roller-ginned Acala and topping $1.30 per pound for San Joaquin Valley (SJV) Pima.
Calcot members with C/A and Desert Southwest with 21-2-38 and strength of 32 grams per tex or higher were paid a total of 80.05 cents per pound. Additional premiums were paid for length, color, and strength on base grade (31-3-35 with strength of 28 to 31.9 gpt) which settled at 77.00 cents.
Members with these varieties will see a final payment of 4.60 cents per pound on base grade. Final Upland payments ranged from 4.85 cents to 7.25 cents with premiums applied for grade, staple, and strength.
Neeper says California SJV saw-ginned Acala, base grade 31-3-36, maintained its traditional premiums to other U.S. Upland cottons, and paid a final sum of 5.00 cents, receiving a final price of 87.70 cents per pound.
With similar length and color premiums, 21-2-38 will settle at 90.50 cents per pound and a final payment of 7.80 cents per pound.
A considerable amount of the season’s receipts exceeded base, says Neeper, as final prices in the SJV Seasonal Pool averaged 88.34 cents per pound.
Roller-ginned Acala performed higher with base grade 31-3-39 receiving a 700-point payment and a final price of 94.70 cents. Longer staple and color premiums pushed a 21-2-40 to a nine-cent payment and a final price of 96.70 cents. SJV prices are on gin UD free terms, as opposed to net pricing elsewhere.
Calcot’s Pima growers will receive a final payment of 10.70 cents per pound, pushing American Pima from Arizona, New Mexico, and Texas to a final price of $1.29.10 per pound, and to $1.30.70 per pound in the SJV’s gin UD free pricing on California’s predominant variety.
Members with cotton in Calcot’s Call Pool saw final payments from 50-450 points and final prices of 750 and 1450 points on the futures fixation in the SJV and 450 points off fixation elsewhere.
Final payments, as approved by Calcot’s board of directors, resulted in a final settlement totaling about $10 million.
During the Calcot business meeting, Gary Martin, Mark Watte, Duane Berger, Ron Rayner, Claude Brown, and Dennis Palmer were re-elected to the Calcot board for three-year terms.
Re-elected as directors-at-large were Michael Brooks, Steve Coester, James Johnson, Keith Johnson, Melvin Pereira, John Pucheu Jr., and Jack Seiler.
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