American Pima Spot Quotations, 47163 [E6-13501]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 71, Number 158 (Wednesday, August 16, 2006)]
[Notices]
[Page 47163]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13501]


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Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / 
Notices

[[Page 47163]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[CN-06-003]


American Pima Spot Quotations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the Agricultural Marketing Service's 
(AMS), Cotton Program, Market News Branch changes to the American Pima 
Spot Quotations. The changes include combining the San Joaquin Valley 
and Desert Southwest Pima cotton markets into one unified American Pima 
Market; changing the quotation terms to Uniform-Density free (UD-free), 
Freight-on-Board (FOB) warehouse; and, quoting discounts for cotton 
fiber strength that is 37.4 grams per Tex (gpt) and lower. The changes 
will be reflected in both the Daily Spot Cotton Quotations and the 
Monthly and Annual Cotton Price Statistics that are currently published 
by the AMS, Cotton Program, Market News Branch. This action is 
necessary to more accurately reflect the overall American Pima cotton 
market.

DATES: Effective August 1, 2006.

FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator, 
Cotton Program, AMS, USDA, STOP 0224, 1400 Independence Avenue, SW., 
Washington, DC 20250-0224. Telephone (202) 720-2145, facsimile (202) 
690-1718, or e-mail darryl.earnest@usda.gov.

SUPPLEMENTARY INFORMATION: The Secretary of Agriculture is authorized 
under the Cotton Statistics and Estimates Act of 1927 (Act) (7 U.S.C. 
473 et seq.) for the collection, authentication, publication and 
distribution of timely information on the market supply, demand, 
location, condition and market prices for cotton. The AMS, Cotton 
Program disseminates market information and reports from spot cotton 
markets under the authority of the Act and the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1622 et seq.).
    AMS, Cotton Program, Market News Branch reports American Pima 
cotton spot prices. The market news price reporting format has changed 
as the classification of American Pima cotton has changed. Current 
recipients of the report will only notice minor changes to the report 
layout as of August 1, 2006, as outlined below. The data collected and 
used for the report will not change.
    In recent years, American Pima cotton production has shifted 
dramatically, and the vast majority of the American Pima cotton crop is 
produced in the San Joaquin Valley, California. As production has 
increased in the San Joaquin Valley, production has sharply decreased 
in the Desert Southwest in Arizona, New Mexico and the area around El 
Paso, Texas. In 1994, 45 percent of the American Pima cotton crop was 
grown in the Desert Southwest with the remaining 55 percent grown in 
the San Joaquin Valley. In 2005, just 11 percent of the American Pima 
cotton crop was grown in the Desert Southwest, with the remaining 89 
percent grown in the San Joaquin Valley. In addition to the production 
shift, the amount of cotton traded for immediate delivery and immediate 
payment (referred to as a spot transaction) also decreased. By changing 
from two separate markets to one combined market, for reporting 
purposes, the spot quotations will more accurately reflect the overall 
American Pima cotton market.
    Currently, quotation terms reflect those used in the Desert 
Southwest, ``FOB (freight on board) warehouse, compression charges not 
included''). Therefore, most cotton traded had to be converted to 
Desert Southwest terms. With the spot quotations changed to reflect 
just one Pima market and the majority of the American Pima cotton now 
being grown and traded in the San Joaquin Valley, the quotation terms 
will reflect where the bulk of the cotton is grown and traded. 
Beginning August 1, 2006 the quotation terms for the American Pima Spot 
Quotations will be changed to ``UD (universal density) free, FOB 
warehouse.''
    The final change to the Pima Spot Quotations will involve reporting 
strength discounts. Beginning with the 2004 Crop, strength discounts 
were applied to American Pima cotton placed into the Commodity Credit 
Corporation (CCC) loan program. For the past two years the Cotton 
Program's Market News Branch has surveyed buyers and sellers of 
American Pima to determine if there were any commercial discounts being 
applied to Pima cotton with strength measuring 37.4 grams per Tex (gpt) 
and lower. Results indicated that there were measurable discounts being 
applied to cotton with strength 37.4 gpt and lower. All ranges quoted 
by Cotton Program's Market News Branch for American Pima cotton will be 
the same as those used by the CCC loan schedule of premiums and 
discounts. These CCC ranges (from lowest to highest) are 35.4 and 
below, 35.5-36.4, 36.5-37.4 and 37.5 and above.

    Dated: August 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E6-13501 Filed 8-15-06; 8:45 am]
BILLING CODE 3410-02-P