04/2012 - Supima

4141 E. Broadway Rd. • Phoenix, Arizona 85040-8831 • Tel: (602) 437-1364 • Fax: (602) 437-0143 • www.supima.com • info@supima.com
NEWS
APRIL 2012
INSIDE
American Pima Loan
Article.................. Page 2
American S/D
Table.................... Page 2
American Pima Update
Article.................. Page 3
Important Web Links
Table.................... Page 3
American Pima Quote
Table.................... Page 3
American Pima Export
Table.................... Page 4
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Agave Denim Expands Range of Supima® Products
Founded in 2002 in Santa Monica,
California, and a Supima licensee for over
seven years, Agave Denimsmith’s founder
and designer Jeff Shafer has consistently
focused on crafting beautiful, inspired and
authentic denim products.
The “West Coast Luxury” lifestyle brand
promises to their customers to only make
clothes that the team at Agave love to wear.
The clothes are manufactured in the USA in an
ethical and sustainable way. With the design
now coming out of Portland, the products are
still being handcrafted in California. The Agave
brand has always been grounded in style and
quality and the products are still created out
of the core values of the company to make the
best products using the finest quality crafts-
men and materials.
Agave’s products have been featured
numerous times and in many ways including
being partnered with the launch of the Tesla
electric vehicles across the country to a CBS
“Person to Person” segment featuring George
Clooney wearing an Agave “Speedster” jacket.
To enjoy the segment “It’s good to be George
Clooney”, thanks to CBS and California Apparel News, just follow this link: http://www.
apparelnews.net/blog/2108_its_good_to_be_
agave.html
Recently, Agave has rolled out an extensive line of men’s tops all in Supima to go
along with their denim range. The new shirt
collection can been seen here via this link:
http://bit.ly/Supima-agave
newsletter@supima.com
2
American Pima Loan Schedule For 2012/13 Announced
The
2012/13
American
Pima loan schedule was released
on March 30 and the full official
details of the U.S. cotton loan
schedule can be seen on the price
support page of the USDA - Farm
Service Agency (FSA) at: http://1.
usa.gov/hCz67
The new extra-long staple loan
rate schedule reflects an increase in
the adjusted national loan average
from 80.70 cents per pound last year,
to 80.73 cents per pound this year.
This year’s average loan price is arrived at by taking the national AmeriPage 5
can Pima base loan rate of 79.77
us¢/lb. and then adding the strength
premium of 0.51 us¢/lb. (down 0.07
us¢/lb. from last year), and a micronaire premium of 0.45 us¢/lb. (up
0.10 us¢/lb. from last year). These
premiums are calculated by the USDA
based on the average crop values attained during the 2011/12 crop year.
2012 ELS (AMERICAN PIMA) COTTON PREMIUMS AND DISCOUNTS
2012-CROP EXTRA LONG STAPLE "ELS"
(AMERICAN PIMA) COTTON
2012 ELS Cotton Extraneous Matter
Schedule of Loan Rates for Eligible Qualities
2012 Loan
2012-Crop ELS Cotton Stored in Approved
Discounts
Warehouses in all Locations.
Level 1
Level 2
Preparation
-700
-985
Grass, Spindle Twist,
Bark & Other
-605
-925
(Cents per pound, net weight, micronaire 3.5 & above and strength of 37.5 and above 1/)
Grade and Leaf
Grade
1
2
3
4
5
6
Below 6
Leaf
1
2
3
4
5
6
7
1-3/8
(44)
Staple
1-7/16
(46)
2012 Loan
2012 Loan
2012 Loan
79.60
79.40
77.70
66.15
59.90
56.65
37.00
81.55
81.40
79.70
68.10
60.40
56.75
37.00
81.65
81.45
79.80
68.10
60.40
56.75
37.00
Leaf Dis.
(ct/lb)
0.00
0.00
-3.45
-3.60
-3.70
-3.80
-3.80
Colors
1-1/2
(48 & Longer)
Micronaire Differences for Eligible Qualities
2012 ELS Cotton
Micronaire Reading
Points/lb.
3.5 & higher
3.3 - 3.4
3.0 - 3.2
2.7 - 2.9
2.6 & lower
All
All
1-3
1-3
1-4
1-5
1-6
0
-485
-770
-1190
-1615
2012-Crop ELS Strength
1/ A micronaire premium of 45 points (0.45 cents) per pound is reflected in the loan rates for the
eligible qualities. Also, a strength premium of 51 points (0.51 cents) per pound is reflected in the loan rates
for the eligible qualities. The adjusted national average loan rate reflected in the above schedule is
80.73 cents per pound. Cotton with micronaire readings below 3.5 and strength below 37.5 will be subject
to the discounts in the schedules of micronaire and strength differences for ELS cotton.
Strength Reading (g/tex)
Discount (pts./lb)
37.5 & higher
36.5-37.4
35.5-36.4
35.4 & lower
0
-620
-870
-1120
AMERICAN PIMA SUPPLY/USE ESTIMATE
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
Beginning Stocks
78
188
156
305
18
28
Production
765
852
431
400
504
851
Imports
Domestic Use
Exports
Unaccounted Stocks
Stocks to Use Ratio
9
6
0
0
7
0
Total Supply 852
1,046
587
705
529
879
39
36
29
21
26
27
672
833
232
694
495
650
Total Use 711
869
261
715
521
677
47
-21
-21
28
20
0
Ending Stocks 188
156
305
18
28
202
26.4%
18.0%
116.9%
2.5%
5.4%
29.8%
Released April 10, 2012 by the USDA World Agricultural Outlook Board (WAOB) - Listed in thousand 480-lb. bales.
Pag
www.supima.com
3
American Pima Supply/Demand Update and Outlook
At the start of the 2011/12
crop year, expectations for a large
crop were not anticipated, nor did
anyone ever perceive that the U.S.
had the potential to produce a new
record American Pima crop. The
initial production estimate was
only forecast to be 737,200 bales.
The previous production record
was 851,800 bales set during the
2007/08 crop year.
However, according to the latest information from the Visalia USDA
classing office that classes all of the
American Pima cotton crop, the U.S.
may indeed have a new production
record. While not a final and official
number, the Visalia office reports that
823,768 running bales have already
been classed for the year. This compares to the 822,555 bales that were
classed during the previous record
year in the 2007/08 crop year. As far
as running bales are concerned, this
would be a new production record.
However, most of the USDA reporting
is done in statistical bales. Using the
average reported running bale weight
of 494.6 lbs. per bale from the March
23 USDA-NASS cotton ginnings report and converting the number to
480 lb. bales, yields a current statistical bale production estimate of only
848,824 bales for the 2011/12 crop.
This figure falls short of the 851,800
bales that were reported as the annual production during the record year
in 2007/08. The difference arises out
of the average reported bale weights.
In the 2007/08 crop year the average
bales weights were reported at 496.3
lbs. per bale.
Important Web Links - American Pima Crop Information
USDA - AMS Pima Spot Price (Daily):
http://www.ams.usda.gov/mnreports/MP_CN011.txt
U.S. ELS Competitiveness Payment Report (Weekly):
http://www.fsa.usda.gov/FSA/epasReports?area=home
&subject=ecpa&topic=fta-el
USDA - NASS Cotton Reports:
http://www.nass.usda.gov/QuickStats/indexbysubject.
jsp?Pass_name=&Pass_group=Crops+%26+Plants&Pass_
subgroup=Field+Crops
USDA - NASS U.S. Production Estimates (Monthly):
http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1046
USDA - FAS Export Sales Report (Weekly):
http://www.fas.usda.gov/export-sales/cottfax.htm
By Classing Office: http://www.ams.usda.gov/mnreports/MP_CN104.txt
By State: http://www.ams.usda.gov/mnreports/MP_
CN110.txt
AMERICAN PIMA U.S. FOB SPOT QUOTATIONS
STAPLE
COLOR AND LEAF GRADE
01-1
02-2
03-3
04-4
05-5
06-6
48
140.75
140.25
127.25
106.50
87.00
77.75
46
140.50
140.00
127.00
106.50
87.00
77.75
44
135.50
135.00
122.00
101.50
85.75
77.50
Mike Range
Differences
Strength Range
Differences
Ext. Matter
Differences
2.6 & Below
-2700
35.4 & Below
-1350
Prep 1:
-810
2.7 - 2.9
-2200
35.5 - 36.4
-1100
Prep 2:
-1095
3.0 - 3.2
-1700
36.5 - 37.4
-850
Prep 3:
-715
3.3 - 3.4
-750
37.5 & Above
0
Prep 4:
-1035
USDA daily report, April 19, 2012 (2011/12 crop) - Net weights in mixed lots, uncompressed, UD Free, FOB Warehouse
AMERICAN PIMA EXPORTS
2004/05
Belgium
Germany
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12 *
14.5
7.1
4.6
6.3
0.2
2.6
0.5
1.4
5.7
18.3
20.4
16.8
14.5
12.7
20.4
12.0
Italy
6.9
11.2
14.3
10.6
2.1
5.4
6.2
3.2
Portugal
1.6
1.4
4.7
8.6
0.1
0.0
0.0
0.0
Switzerland
6.8
5.6
7.4
8.9
2.2
0.0
0.7
2.1
21.5
24.9
6.4
16.5
8.2
4.8
4.0
15.3
0.6
0.6
1.0
4.4
0.0
0.0
0.0
0.0
57.6
69.1
58.8
72.1
27.3
25.5
31.8
34.4
16.2
2.2
11.8
13.7
9.0
9.6
8.7
7.7
263.5
Turkey
Other
EUROPE TOTALS
Bangladesh
128.1
246.3
163.6
176.4
57.5
320.5
188.6
India
China
76.0
75.0
91.6
146.7
27.2
125.3
72.3
70.0
Indonesia
47.6
41.3
59.4
68.0
20.3
22.9
38.7
23.9
Japan
73.2
44.0
49.8
53.3
14.8
24.7
43.5
14.3
Korea Republic
24.7
10.8
21.8
22.5
4.7
12.6
17.9
18.4
182.6
55.9
113.6
159.0
26.8
69.7
47.9
86.4
59.9
7.6
31.3
29.8
2.9
10.9
11.8
5.4
Thailand
21.1
15.3
22.1
24.1
8.8
18.6
15.2
11.1
Other
21.1
4.2
6.7
18.4
17.1
1.9
1.7
0.9
650.5
502.6
571.7
711.9
189.1
616.7
446.7
501.6
Pakistan
Taiwan
ASIA TOTALS
Brazil
2.3
3.0
5.5
5.3
2.0
0.9
0.7
0.5
Canada
4.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Chile
0.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
Ecuador
0.0
0.4
0.0
0.0
0.0
0.0
0.0
0.0
Guatemala
1.9
0.5
0.0
0.1
0.8
0.0
0.2
0.3
Mexico
0.9
2.4
0.5
0.3
1.2
3.3
2.7
2.5
50.2
1.9
13.6
28.2
2.4
14.9
33.4
27.2
Peru
Salvador
0.0
0.3
0.0
0.0
0.0
0.0
0.0
0.0
Venezuela
0.0
1.5
0.0
0.0
0.0
0.0
0.0
0.0
60.0
10.1
19.6
33.9
6.6
19.5
37.6
30.7
0.0
0.0
2.4
14.6
3.8
18.4
7.4
7.5
768.1
581.8
652.5
832.5
226.8
680.1
523.8
573.9
WESTERN HEMISPHERE TOTALS
Rest of World
WORLD TOTALS
Source - USDA/FAS U.S. Export Sales - April 19, 2012 - Sales listed in thousand 480-lb. bales - *Listed in running bales through April 12, 2012