Based on recent discussions with USDA officials, there are important clarifications on the charges or fees a producer is responsible for when warehouse-stored Pima cotton is forfeited to USDA. In general, the calculations on cotton forfeiture charges are the same for both Pima and upland cotton. If Pima cotton is forfeited to USDA, the producer is only responsible for paying the difference in the Cotton Storage Agreement (CSA) storage rate for the warehouse and the USDA storage credit for the time the cotton is under loan, not the full storage costs for the time the cotton is under loan. For anytime the cotton is not under loan, the producer is responsible for paying the full warehouse storage rate.
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Price Loss Coverage Payments for 2019 & 2020 Marketing Years Projected by Mississippi State University
ACSA Joins Coalition Letter Addressing Freight Weight Limits for Food, Fuels, Feed, and Fiber
The White House & Senate Agreement Draft for COVID-19 Relief Package
The PDF below provides an outline of the next COVID-19 relief package agreed upon by The White House and Senate Republicans. Senate Republicans plan to release the plan today to allow for the Senate and House to begin discussion.
Bangladesh Textile Mills Association Writes ICA Regarding Difficulties to Fulfill Their Contracts
On July 18th, the Bangladesh Textile Mills Association (BTMA) wrote the International Cotton Association (ICA) in regarding to their inability to fulfill contracts due to the current environment. On July 22nd, ICA replied to BTMA by stating “the legal concept of force majeure is intended to cover those circumstances that could delay or impede the full execution of a contract. It does not cancel a contract or remove all obligations for either party.”
CFTC’s Open Meeting
On July 22nd, U.S. Commodity Futures Trading Commission held an open meeting to consider two items: (1) Final Rule: Capital Requirements for Swap Dealers and Major Swap Participants; (2) Proposed Rule: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swaps Participants. See PDF below for key takeaways and details provided by Delta Strategy Group.
CFTC’s Market Risk Advisory Committee Meeting
On July 21st, U.S. Commodity Futures Trading Commission’s Market Risk Advisory Committee had a meeting. See PDF below for key takeaways and details provided by Delta Strategy Group.
CFTC’s Technology Advisory Committee Meeting
On July 16th, CFTC’s Technology Advisory Committee had a meeting to hear from the subcommittees. See PDF below for key takeaways and details provided by Delta Strategy Group.
2020/2021 Crop Year “Cost to Market” Adjustment
In the Upland Cotton Announcement – July 16, 2020, USDA stated that the “cost to market” adjustment for the 2020/2021 crop year will be 16.95 cents/lb. This adjustment will have an effective date for the week ending August 6, 2020. See the announcement below.
California and Arizona Representatives Write Sec. Perdue to Include ELS Cotton in CFAP
On July 10th, Reps. TJ Cox (D-CA),Jim Costa (D-CA), Josh Harder (D-CA), Ann Kirkpatrick (D-AZ) and Tom O’Halleran (D-AZ) write Secretary Perdue urging him to include ELS cotton in the CFAP. See the full letter below!
