USDA Upland Cotton Announcement - October 15, 2020

<font face="verdana">USDA Upland Cotton Announcement - October 15, 2020<br><br>The Department of Agriculture's Commodity Credit Corporation announced the adjusted world price (AWP) for Strict Low Middling (SLM) 1-1/16 inch (leaf grade 4, micronaire 3.5-3.6 and 4.3-4.9, strength 26.0-28.9 grams per tex, length uniformity of 80.0-81.9 percent upland cotton (base quality), adjusted to U.S. quality and location, fine count adjustment (FCA), coarse count adjustment (CCA), and marketing loan gain/loan deficiency payment (LDP) rate that will be in effect from 12:01 a.m., Eastern Time, Friday, October 16, 2020, through midnight, Eastern Time, Thursday, October 22, 2020.&nbsp; The next announcement of the AWP, FCA, CCA, and LDP rate for upland cotton will be on Thursday, October 22, 2020, at 4:00 p.m., Eastern Time.<br></font><br><div><img src="https://download.qtmarketcenter.com/jay/USDA-UplandCotton-Oct16-1.JPG"></div><img src="https://download.qtmarketcenter.com/jay/USDA-UplandCotton-Oct16-2.JPG"><br><font face="verdana"><br>If sufficient data are not available to determine a CCA for the week, regulations governing the CCA require that the latest available CCA will remain in effect.&nbsp; The current CCA of 0.00 cents per pound will remain in effect through midnight, Thursday, October 22, 2020.<br><br>The Agricultural Act of 2014 provides that the AWP may be further adjusted if the Secretary determines adjustment is necessary to 1) minimize potential loan forfeitures, 2) minimize accumulation of Government stocks, 3) ensure free and competitive marketing of upland cotton, both domestically and internationally, and 4) ensure an appropriate transition between current-crop and forward-crop price quotations.&nbsp; No adjustment has been made this week.<br><br>Because the AWP for the period is less than 52.00 cents per pound, which is the base quality loan rate, the loan repayment rate during this period is equal to the AWP, adjusted for the specific quality plus applicable interest and storage charges. Note that the "costs to market" adjustment for the 2019/20 crop year is 15.20 cents/lb and is included in the calculation of the AWP.<br><br></font><div><font face="verdana">Because the AWP for the period is less than 52.00 cents per pound, which is the base quality loan rate, the loan repayment rate during this period is equal to the AWP, adjusted for the specific quality plus applicable interest and storage charges. The marketing loan gain/loan deficiency payment rate of 0.00 is the difference, if positive, between the base loan rate of 52.00 cents and the AWP.<br></font></div><div><font face="verdana"><br></font></div><div><font face="verdana">LJ<br></font></div>