Yesterday, Representative David Scott (D-GA), Chairman of the House Committee on Agriculture, Representative Sanford Bishop (D-GA), Chairman of the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, and Senator Raphael Warnock (D-GA), the sole cotton state Democrat on the Senate Committee on Agriculture, Nutrition, and Forestry wrote a letter to Secretary Vilsack asking him to use a portion of the discretionary funding given to the USDA through previous COVID-19 relief packages to assist cotton merchandisers. This coalition of key leaders referenced the additional assumed risks and costs created from COVID-19 related diminished demand and supply chain disruptions, recognizing the “important roles of merchandisers in providing liquidity and risk management to producers.” The ACSA staff is very grateful for the support displayed by these Congressional leaders.
Yesterday, the House Transportation Subcommittee on Coast Guard and Maritime Transportation held a hearing entitled “Impacts of Shipping Container Shortages, Delays, and Increased Demand on the North American Supply Chain.” The hearing featured two panels: the first panel included Federal Maritime Commission (FMC or Commission) Chairman Daniel Maffei and Commissioner Rebecca Dye, and the second panel included representatives from the private sector. Below are several key takeaways from the hearing.
On June 9, 2021, the U.S. Commodity Futures Trading Commission held a meeting of its Agricultural Advisory Committee, which ACSA President/CEO Buddy Allen and Vice-Chairman Tommy Hayden sit on. The Committee received a report from the Subcommittee to Evaluate Commission Policy with Respect to Implementation of Amendments to Enumerated Agricultural Futures Contracts with Open Interest. A special thank you to Azeez Syed of Olam Cotton for his work on the Subcommittee, and David Rossen of Allenberg Cotton Company for serving as a panelist during the meeting. The meeting also included a discussion on global ag commodity derivatives contracts and other agricultural risk management issues.
On April 16, 2021, the China Cotton Association (CCA) wrote the Committee for International Co-operation Between Cotton Associations (CICCA) a letter regarding cotton in the Xinjiang region of China. The China Cotton Association also released a statement regarding the recent boycott on Xinjiang cotton by apparel brands. See both the letter and statement below.
On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below.
On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information.
The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC).
The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below.
Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing.
In December, China imported 1,629,083 bales (354,691 MT) of cotton, representing an increase of 80.43% month-on-month (m/m), and an increase of 130.9% year-on-year (y/y). The total value was USD $588.82 million, representing an increase of 89.33% m/m, an increase of 117.21% y/y. In 2020, Chinese cotton imports totaled 9,912,346 bales (2,158,159 MT), an increase of 16.71% y/y. U.S. cotton was ranked as the largest supplier with a total of 4,486,242 bales (976,764 MT), accounting for 45.26% of total imports, the U.S. cotton’s market share increased 25.76% y/y. Brazil cotton was ranked as the second largest with a total quantity of 2,839,260 bales (618,176 MT), accounting for 28.64% of total imports, and its market share increased 1.31% y/y, according to the latest GACC statistics.