The Department of Agriculture’s Commodity Credit Corporation announced that the competitiveness payment program payment rate in effect from 12:01 a.m., Eastern Time, Friday, July 14, 2017, through midnight, Eastern Time, Thursday, August 10, 2017, is zero. The next ELS payment rate announcement will be on August 10, 2017, at 4 p.m., Eastern Time.
ELS competitiveness payments are provided whenever, for 4 consecutive weeks, the lowest Friday through Thursday average adjusted price quotation for foreign growths (LFQ) is less than the Friday through Thursday average price quotation for U.S. Pima cotton, CFR Far East (USPFE); and the adjusted LFQ is less than 134 percent of the current crop year loan level for ELS cotton grade 2, staple 46, micronaire 3.5 or higher, strength 37.5 grams per tex and above (81.10 cents per pound).
Future payments will be established if price conditions warrant. Relevant data for the ELS competitiveness program follow:
The adjusted LFQ = LFQ adjusted for the transportation cost between the United States and the Far East. Effective with the next announcement on August 10, 2017, the transportation adjustment to the LFQ for calculating the LFQ as a percent of the ELS loan rate is 14.80 cents per pound. This is changed from the prior year’s adjustment of 16.26 cents per pound.
To obtain an ELS agreement or to inquire regarding operational issues, please contact Richard Mashek, Kansas City Commodity Office at (816) 823-1134 or by e-mail Richard.Mashek@kcc.usda.gov.