Declining Pima prices may have stimulated U.S. Pima sales for 2007/08. During the last 11 days of 2006/07 the competitiveness payments by the U.S. government to U.S. exporters of Pima will be available at a rate of about 3.4 cents per pound.
The competitiveness payments were available during the second half of December 2006 through mid-January 2007, with payment rates ranging between 1.39 cents per pound and 0.59 cents per pound.
At the beginning of 2007/08 the competitiveness payments for Pima will not be available, because there are no 2007/08 quotes reported by Cotton Outlook. Export commitments by Egypt for 2007/08 are estimated at 10,000 tons as of mid-July 2007 and represent projected carryover sales from 2006/07 commitments.
International Cotton Advisory Committee
marketing@alchempro.com
