TEXAS COTTON ASSOCIATION & CCI COTTON USA Special Trade Mission from Latin America June 13 & 14, 2012

Transcription

1 TEXAS COTTON ASSOCIATION & CCI COTTON USA Special Trade Mission from Latin America June 13 & 14, 2012

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3 TEXAS COTTON ASSOCIATION & CCI COTTON USA Special Trade Mission from Latin America Welcome to Texas, the largest cotton producing state in the U.S. Texas has come a long way in its cotton production. According to TCA records, the 1867/68 crop was only 215,000 bales. The USDA reported the largest crop ever produced in Texas was in 2005/06 with just under 8.5 million bales, including Pima of 43,500. Texas farmers planted 5,950,000 acres; good weather allowed them to obtain a low abandonment at 5.9%, leading to harvested acres of 5,600,000 and record yields of 723 pounds per acre. USDA reported total production for the 2005/06 crop for the Southwest (including Texas, Oklahoma and Kansas) was 8,929,200 including Pima. Ideal weather conditions throughout the planting and growing season contributed to the production increase; however, some credit belongs to improved seed varieties and expansion of irrigated acres. Production in Texas and the other Southwest states area for 2011/12 was significantly lower due to the severe drought conditions that occurred. At the same time, this region s planted area now accounts for a larger share of the total U.S. planted acres. Below, Table 1 shows the estimated USDA Plantings estimated plantings for this region in 2012/13, along with the final planted acres for the previous two seasons. Table 1 - U.S. Southwest Cotton Planted Area for 2010/11, 2011/12 and 2012/13(est.) 2010/ / /13est. Texas 5,567,000 7,570,000 6,813,000 Oklahoma 285, , ,000 Kansas 51,000 80,000 55,000 Total Southwest 5,903,000 8,065,000 7,218,000

4 For 2011/12, the USDA reports Texas planted 7,550,000 acres of Upland cotton and 20,000 of Pima cotton. Oklahoma and Kansas planted 415,000 and 80,000 acres, respectively. The total planted acres in the U.S. Southwest region, which includes Texas, Oklahoma and Kansas, amounts to 8,065,000 acres. USDA reported harvested acres for the Southwest at 2,985,000 acres. Looking back at the 2010/11 season, the USDA reports Texas cotton planted acres at 5,567,000 million, including 17,000 of Pima. Oklahoma and Kansas planted 285,000 and 51,000 acres, respectively. Planted acres for the U.S. Southwest region totaled 5,903,000, and harvested acres were 5,686,500. Final crop figures for the Southwest region from USDA, equaled 3,656,000 bales of Upland Cotton. Below in Table 2, the USDA 2011/12 crop estimates, along with the final figures of the previous three seasons. Table 2 - Southwest Cotton Production by State in 1,000 bales 2008/ / / /12 Texas 4,450 5,400 7,840 3,500 Oklahoma Kansas Total Southwest Upland 4,746 5,788 8,344 3,656 Texas Pima Total Southwest 4,770 5,820 8,375 3,696

5 Texas covers a very large area and cotton production is scattered throughout the state. With the exception of China, India, Pakistan and Central Asia, no other foreign country produces more cotton than this area. About one-third of Texas cotton is irrigated. We have both the earliest and the latest harvested cotton in the U.S. along with some of the finest extra long staple cotton and some of the lowest coarse-count cotton in the world. Quality-wise, cotton from Texas usually equals or exceeds quality of cotton from the Memphis territory and approach the quality produced in the Arizona/California region. Texas cotton is consumed by both domestic and foreign mills. The map from 2008 pictured on the next page (Figure 1) shows where cotton is planted in Texas.

6 Texas Cotton Acres Planted Figure 1 Acres Planted

7 When we talk about Texas cotton, we have to define what we mean in terms of quality. When foreign mill buyers talk about Texas cotton, many of them still think of low grade, low micronaire cotton that was harvested in West Texas during December/January, after having suffered the adversities of the harsh Texas climate, such as rain, freeze and snow; in other words, cotton for O/E spinning. Thanks to the on-going seed improvement program, we have new varieties that have a shorter growing cycle and therefore are harvested earlier. They also have improved fiber properties, with longer staple and higher PSI/GPT readings. U.S. Cotton Belt Figure 2 U.S. Cotton Belt

8 The "Texas Cotton Production Map" can be presented in different ways: By USDA Crop Reporting Districts **Table 3 and Figure 4 By USDA Classing Offices ** By geographical areas **Figure 3 To simplify things, Texas can be divided into Four Main Cotton Areas **Table 3 & Table 6 Table 3 - U.S. Southwest Cotton Production by Region for 2008/09, 2009/10, 2010/11 and 2011/ / / / /12 South Texas 473, ,500 1,226,400 1,216,800 Blacklands & North Texas 347, , , ,000 El Paso (includes Pima) 60,900 71,200 79,000 99,300 West Texas/Oklahoma/Kansas 3,893,175 4,552,000 6,858,000 2,061,900 Grand Total 4,474,000 5,039,000 8,375,000 3,696,000 Descriptions of each of these main areas are included below. 1. South Texas: Rio Grande, Corpus Christi Area, Upper Coastal Bend & South Central, and the Winter Garden & Edwards Plateau regions of Texas. The dominant seed in the region is a Fibermax variety, which produces a high grade cotton with long staple and high GPT. Due to proximity, South Texas' largest market is Mexico. Cotton produced in the region is also exported to numerous other markets around the world, often being used as a substitute for SJV Acala and Australian due to price considerations. Mills using this cotton in volume are very pleased with the performance and consistency. 2. Blacklands and North Texas: This is a large cotton area, scattered all over the eastern and northern portions of Texas. The area is predominantly rain-fed production. This region s planting period falls about midway between planting in South Texas and the High Plains region. The harvest period runs from September until November/December. As to quality, this area formerly produced medium to short staple cotton, but now, improved cotton varieties have brought staple up to 1-1/16" and longer.

9 3. El Paso: The El Paso region typically produces fewer than 100,000 bales, but it is an important because it is usually longer staple cotton. The area is 100% irrigated. The staple runs from 1-1/8" up to Extra Long Staple (ELS) varieties. According to the USDA the area produces between 15,000 and 25,000 bales of Pima cotton. 4. West Texas (includes the High Plains and Low [Rolling] Plains of Texas as well as Oklahoma & Kansas): This is the single most important cotton area in the state, accounting for two-thirds of the State s acres and production. West Texas is also, by far, the largest producing region in the world. In years past, the area produced shorter staple length cotton, making it the biggest supplier of coarse count to the world. With the introduction of the Fibermax type seed variety to the region several years ago, and the subsequent improvement in quality from other seed suppliers, the quality that is now produced in this region is much longer staple cotton suitable for medium to finer count yarns. The region is currently split evenly between irrigated and 100% rain-fed production. Planting occurs from early May through mid- June. The harvest season typically begins in early October and ends in late November or early December depending on weather and crop size. Weather throughout the region can be unpredictable in both the early and late season. Overall quality of the region s crop is excellent, and a wide array of qualities is typically available. In recent years discounts to the region s crop have typically been the result of low micronaire. West Texas is nearly 100% exported to a wide variety of markets around the world. Thanks to excellent logistics and attractive prices, many mills rely on West Texas cotton for their production needs. You can use Texas grown cotton for practically your entire range of yarn counts. In addition, of course, Texas merchants handle large volumes of Memphis and Western cotton. You can depend on U.S. cotton exports. During recent years, when low priced contracts of

10 foreign cotton were delivered with long delays and/or defaulted upon, U.S. merchants proved to be reliable suppliers. As in every other business, it is important for you to know your suppliers. For additional protection, make sure you are doing business with members of the American Cotton Shippers Association and at least one of its Federated Associations, such as the Texas Cotton Association. It has been a privilege for the Texas Cotton Association and our group of Texas cotton merchants to host the visit of this distinguished group of friends and textile mill executives.

11 TEXAS CROP REPORTING DISTRICTS Upland Cotton Upland 2010/11 & 2011/12 Final TEXAS UPLAND COTTON DISTRICT ESTIMATES, Final 2010 & / Planted Acres Harvested Acres Yield per Acre Production District 1,000 acres 1,000 acres pounds 1,000 bales 1 - N , , S 2, , , , N S S , , N S N S Other Districts State 5, , , , , ,500.0 Table 4 1/ Preliminary Released August Figure 4 Texas Reporting Districts

12 Table 5 TEXAS/OKLAHOMA & KANSAS USDA 2011/12 PRODUCTION SOUTH TEXAS Rio Grande Valley (30% irrigated) ,900 Bales Corpus Christi Area (all dryland) ,000 Bales Upper Coastal Bend & South Central (10 to 25% irrigated) ,800 Bales Edwards Plateau ,000 Bales Winter Garden (100% irrigated)... 56,100 Bales TOTAL... 1,287,800 Bales BLACKLAND & NORTH TEXAS Blacklands (all dryland) ,300 Bales South East Texas... 28,300 Bales Cross Timbers (all dryland) and North East Texas total included in Other Districts EL PASO Upland (100% irrigated)... 59,300 Bales Pima (100% irrigated)... 40,000 Bales WEST TEXAS/OKLAHOMA/KANSAS High Plains (50% irrigated)... 1,834,900 Bales Low [Rolling] Plains (mostly dryland) ,700 Bales Oklahoma (33% irrigated) & Kansas ,000 Bales TOTAL... 2,394,500 Bales UPLAND COTTON - OTHER DISTRICTS Includes: North East Texas and Cross Timbers... 13,700 Bales TOTAL Texas/Oklahoma & Kansas Production... 3,696,000 Bales

13 2010/11 TEXAS / OKLAHOMA / KANSAS Figure 3 Texas Production Regions! COTTON PRODUCTION BY REGION Table 6 Southwest Production by Main Regions SOUTH TEXAS... 1,226,400 Bales BLACKLANDS & NORTH TEXAS ,600 Bales EL PASO... 79,000 Bales N & S LOW PLAINS (ROLLING PLAINS)... 1,023,000 Bales WEST TEXAS/OKLAHOMA/KANSAS... 5,835,000 Bales GRAND TOTAL... 8,375,000 Bales