Cotton acreage down in 09; Texas to grow 57% of US crop

U.S. cotton producers intend to plant 8.11 million acres of cotton this spring, down 14 percent from 2008, according to the National Cotton Council’s 26th Annual Early Season Planting Intentions Survey released Friday afternoon. Upland cotton intentions are 7.97 million acres, a decrease of 14 percent from 2008. Extra long staple (ELS) intentions of 142,000 acres represent a 19 percent decline from 2008. The results were announced at the NCC’s 2009 Annual Meeting in Washington, DC. Assuming an average abandonment rate of 9.4 percent, total upland and ELS harvested area would be about 7.35 million acres. Applying state-level yield assumptions to projected harvested acres generates a cotton crop of 12.76 million bales, compared to 2008’s total production of 13.04 million bales. Assuming average seed-to-lint ratios, 2009 cottonseed production is projected at 4.35 million tons, down from 4.43 million last year. The NCC survey was mailed in mid-December, 2008 to producers across the 17-state Cotton Belt. Survey responses were collected through mid-January. Based on survey results, all four regions show intended upland cotton planting area decreases from last season. The West and Mid-South show the largest percentage drops of 31 and 23 percent, respectively. Smaller reduction of 18 and 9 percent are expected in the Southeast and Southwest, respectively. Only two states indicated upland expansion, Kansas at 7 percent and Florida at 3 percent.

Ag Comittee takes first step in strengthening CFTC

The House Agriculture Committee has approved legislation to increase the transparency and strengthen oversight of futures, options and over-the-counter (OTC) markets. By voice vote, the Committee approved the Derivatives Markets Transparency and Accountability Act of 2009, a bill sponsored by Committee Chairman Collin Peterson. The legislation toughens position limits on futures contracts for physically-deliverable commodities as a way to prevent potential price distortions caused by excessive speculative trading. The bill also imposes a clearing requirement on OTC derivatives contracts and empowers the Commodity Futures Trading Commission (CFTC) with the ability to suspend trading in naked credit default swaps under certain circumstances. Peterson pointed out - this bill broadens and improves on last year's bipartisan derivatives legislation. He called on Congress to - act quickly and pass a bill that will bring much-needed transparency to derivatives markets.Rep. Randy Neugebauer (R-TX) tells All Ag, All Day that there is talk of a systemic regulator -a "grandaddy" over all - to oversee all markets. There has also been talk of consolidating the CFTC with the Securities and Exchange Commission (SEC).

Peanut Industry in trouble

Peanut Corporation of America has shuttered a second peanut-processing plant. This one, in Plainview, Texas, was closed by state authorities who discovered salmonella in products there. PCA owns three peanut-processing plants, in Georgia, Texas and Virginia. The federal investigation into the salmonella outbreak, which has killed eight people and sickened 600 others in 44 states, has centered on the company's Blakely, Georgia, plant, which was shut down last month. This time the bacteria were discovered before the affected granulated peanuts and meal left the Texas plant, but roasted nuts had already been shipped out of state. Company officials notified the distributor Monday night and recalled the roasted peanuts. Texas officials believe none of the contaminated products reached consumers. Inspectors found dead rodents and feces inside the plant and officials at the Texas Department of Health shut the plant down. During a House committee hearing Wednesday Energy and Commerce Chairman Henry Waxman disclosed internal e-mails showing that Peanut Company of America Executives were notified last fall that its products tested positive for salmonella. When asked about the notification company’s executives said - on the advice of counsel, they invoked their Fifth Amendment rights and refused to testify.