[Federal Register: August 16, 2006 (Volume 71, Number 158)]
[Notices]
[Page 47163]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au06-35]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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[[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