All Cotton production is forecast at 17.8 million 480-pound bales, up 3 percent from last month but down 17 percent from last year's 21.6 million bales. Yield is expected to average 811 pounds per harvested acre, up 28 pounds from last month but down 3 pounds from Harvested area is expected to total 10.5 million acres of all cotton, down 1 percent from last month and down 17 percent from last year. Upland cotton production is forecast at 17.0 million 480-pound bales, up 3 percent from last month but down 18 percent from last year. Compared with last month, lower upland production forecasts in the Delta and Southeast were offset by the 15 percent increase in Texas production to 7.00 million 480-pound bales. American-Pima production is forecast at 793,000 bales, down 2 percent from last month but up 4 percent from last year. American-Pima harvested area is expected to total 289,000 acres, down 1 percent from last month and down 11 percent from 2006

Dr. Bob’s “Top 10 things about the cotton market a farmer does not want to hear”

Dr Bob’s “Top 10 things about the cotton market you don’t want to hear” 10.Auburn Agricultural Economist predicts $1 cotton by fall of Everything worth knowing about economics is just common sense

Dr Bob’s “Top 10 things about the cotton market you don’t want to hear” 9.You may have a claim.

Dr Bob’s “Top 10 things about the cotton market you don’t want to hear” 8.Wheat is $6.00 a bushel but you can’t buy any seed.

Dr Bob’s “Top 10 things about the cotton market you don’t want to hear” 7.USDA: 2007 US cotton crop is getting bigger.

Alabama Cotton Crop Condition Report Very Excel- Poor FairGoodlent Percent Acres Est Yld (lbs) Total Prod Average Yld 391.5

Cotton variety test planted May 20. Picture taken mid July. Harpersville Alabama 2007

“The crop on the High Plains and Rolling Plains keeps getting larger every week. If an early freeze can be avoided, the Texas crop could easily exceed the record levels of My estimate of 700 pounds per acre is probably very conservative.” – Jeff Thompson, AQCA

Dr Bob’s “Top 10 things about the cotton market you don’t want to hear” 6.The economy is in recession

5.The Chinese have cut off all raw cotton imports. Dr Bob’s “The top 10 things about the cotton market you don’t want to hear”

China U.S. “Not since England in the 1800s has one country dominated world cotton trade and consumption as China does today.”

“The end of the Multifiber Arrangement (MFA) and increased use of genetically modified (GM) cotton have profoundly altered world cotton markets in recent years. The economic restructuring and growth of China and India have been important as well. During the mid-2000s, world cotton consumption grew at its fastest rate in decades, and world cotton trade has grown even faster. “ – USDA, Cotton World Situation, Aug 18, 2007Multifiber Arrangement

13 June Putting an end to speculation, the European Union Tuesday made it clear that quotas will effectively be eliminated by the end of the year on all textile and clothing imports from China.

4.Biodiesel causes cancer. Dr Bob’s “The top 10 things about the cotton market you don’t want to hear”

Cottonseed Biodiesel Alabama produces about 500,000, 675,000 bales of cotton, and 250,000 Tons of cottonseed. At 20% oil content, this converts to 13 Million gallons of diesel fuel. Cottonseed price*: $100-$120 per ton –Oil value per ton: $120 –Meal value per ton: $200 * Price subject to change

3.Corn exports are down Dr Bob’s “Top 10 things about the cotton market you don’t want to hear”

2.Two Words : Mad Cow Dr Bob’s “Top 10 things about the cotton market you don’t want to hear”

1.You can’t make ethanol out of corn Dr Bob’s “Top 10 things about the cotton market you don’t want to hear”

US Cotton in the biofuels era Demand for corn and soybean acreage will limit cotton acres – Freedom to Farm will work. US Cotton acres will run around million acres, production will be million bales. US textile industry will continue to decline, by 2010 virtually all US cotton will be exported. US will continue to be the “residual supplier” for the world market, storing most of our crop each year. AWP will remain in the mid ’50’s, world cotton production will be adequate to meet demand, surpassing 130 million bales by 2010.

Crop Insurance Reform: Group Risk policies are good Insure farmer, not banker Provide reasonable level of protection Condemn crop sooner, allow replanting flexibility

Farm Bill Reform Don’t give welfare to millionaires. Don’t pay farmers not to grow crops. Let “Base” go with farmer, not land(lord). Let “Base” be a 10-year rolling average of crops actually produced by a farmer. No cash except in emergency, USDA payments offset Form F income only. Provide reasonable farm production insurance. Provide reasonable conservation incentives.