Georgia Tobacco Hotline
August 14, 1999
1-800-659-7288
Welcome to the Georgia Tobacco Hotline
J. Michael Moore
University of Georgia
Extension Agronomist-Tobacco
Editor
Topics for this week include:
- GA-FL Flue-Cured Tobacco Market Report
- Old Belt F-C Tobacco, Type 11
- Eastern N.C. F-C Tobacco, Type 12
- S.C. and Border N.C. F-C Tobacco, Type 13
- Georgia Tobacco Warehouse Ranking
- Phase II Committee Nearing Announcement
GA-FL FLUE-CURED TOBACCO MARKET REPORT
WEEKLY SUMMARY FOR WEEK ENDING THURSDAY, AUGUST 12, 1999
According to the USDA AMS Tobacco Market News Service, grade bid averages continued their upward trend, during the third week of Georgia-Florida flue-cured tobacco auctions. Composition of marketings advanced up the stalk, and the amount of tobacco placed under loan increased slightly. Volume of sales ranged from moderate to light. Based on the effective quota, nearly 18 percent of the 1999 crop has been sold.
Gross Sales by States and Type follow:
State / Type
Weekly
Pounds
Weekly
Average
Season
Pounds
Season
Average Florida
1,318,161
$158.52
3,925,406
$152.46 Georgia
4,701,816
$148.89
13,510,400
$149.63 Total
6,019,977
$151.00
17,435,806
$150.27
The overall average of $151.00 for the week was up 97 cents from a week earlier. During the same number of sales days (11) last season, 18.0 million pounds had averaged $144.95 per hundred.
Over three-fourths of the grade bid averages advanced this week. In heavy volume sales, gains were mostly $3 to $4 per hundred, and were distributed among all groups. Losses were a similar amount, and centered mainly on nondescript and lower quality primings. The majority of the lug and priming sales ranged between $138 and $166, while nondescript sold from $107 to $128 per hundred.
Baled tobacco continued to bring several dollars over same grade sheet prices. However, the gap between bale and sheet prices has narrowed somewhat.
The proportion of lug (X) tobacco rose 18 percentage points and took over as the largest group at 43 percent. Primings (P) dropped to 33 percent and nondescript (N) slipped to 16 percent. Leaf (B), cutter (C), and no-grade (No-G) offerings rounded out the rest of sales at 3, 3, and 2 percent, respectively. Good and fair quality tobacco combined for 72 percent of all auctions, with orange (F) the primary color.
Although loan receipts increased this week, they remained low as just 2.6 percent of sales was delivered into the Flue-Cured Stabilization Corporation. The season-to-date figure stands at 2.2 percent, compared with 5.6 percent at the same point last year.
The National Agricultural Statistics Service Type 14 production estimate was 85,600,000 pounds - down 3,500,000 pounds from July.
Even this estimate appears to be higher than that expected by most growers and County Extension Agents in tobacco growing counties in Georgia. The effective allotment for Georgia is 33,802 acres. Yield estimates are expected to be closer to 1900 pounds per acre than the lowered NASS estimate of 2000 pounds, further lowering the statewide production estimate to as little as 64 million pounds rather than the NASS estimated 70 million. County agents report areas of the state where growers who are completing harvest with preliminary yields of 1300 to 1500 pounds per acre. Additionally, some growers have accepted Federal Crop Insurance Settlements and destroyed their remaining tobacco after losses to tomato spotted wilt virus, drought, drowning, and the scorching temperatures of late July.
Auction bid averages per hundred pounds on several U. S.
grades and comparisons follow:
U.S. Grade
Auction Bid
Change From
Previous Week
Change From
Previous Year X3F
$166
Up $4
Up $5 X4F
$163
Up $4
Up $6 X3KM
$163
Up $4
Up $4 X4KM
$158
Up $3
Up $4 X4GK
$147
Up $6
Up $3 P4L
$157
Up $3
Up $9 P4F
$156
Up $3
Up $7 P5F
$138
Down $4
Up $11 P4G
$144
Up $3
Up $11 N1XO
$128
Down $3
Up $19
Weekly Summaries for the other flue-cured belts follow:
The first week of the 1999 season of Old Belt flue-cured auctions ended Thursday. Nearly every grade bid posted gains over last season. Higher supported offerings averaged about the same in both sheets and bales, however, lower supported tobacco averaged from $5 to $9 per hundred more when presented in bales. Around one-third of the recorded sales in Type 11 was baled tobacco. Volume of sales was heavy, and loan receipts declined considerably. The general average for the week of $178.88 per hundred was up $4.43 from last year after the same three day period.
The Flue-Cured Stabilization Corporation accepted 8.1 percent of sales opening week this year, compared to 27.5 percent during the same three day period last season
The National Agricultural Statistics Service increased the Type 11 production estimate to 196,400,000 pounds, up 1,200,000 pounds in their August release.
EASTERN N.C. F-C TOBACCO, TYPE 12
A slightly better market was shown for Eastern North Carolina flue-cured tobacco, during the second week of the 1999 season. Somewhat higher bid averages were recorded, and much more new crop tobacco was sold. Loan receipts were a little lower, and volume was no better than moderate at most auction centers. Based on the effective quota, about 12 percent of the crop has now been sold.
Eastern Belt markets sold 21,540,577 gross pounds for the week ending August 12, returning an average of $163.54 per hundred - down $7.64 from opening week when more carryover tobacco was sold. A comparison of bale prices to sheets showed bales $4 to $7 higher in the majority of cases.
The Flue-Cured Stabilization Corporation received 1,310,176 pounds for the week, or 6.1 percent of gross sales. This raised the total for the year to 2,356,139 or 7.2 percent. At the same point last season, 16.8 percent, had been placed under loan.
The August report from the National Agricultural Statistics Service set 1999 production for the Eastern Belt at 282,900,000 pounds, unchanged from the July report.
S.C. AND BORDER N.C. F-C TOBACCO, TYPE 13
South Carolina and Border North Carolina flue-cured tobacco markets held firm during the second week of sales. The majority of bid averages improved, but the general average was lower. This was due to a decrease in carry-over leaf on sales floors. Volume was moderate to light at most points, and loan receipts increased slightly during the week.
The weekly average of $154.85 was down $2.59 from opening week. A comparison of bales to sheets showed that bales averaged from $2 to $5 higher in most cases.
The Flue-Cured Stabilization Corporation received 9.3 percent of this week's gross sales. The season's loan receipts stand at 8.5 percent, compared to 22.0 percent during the first seven days last year.
Production of Type 13 tobacco for 1999 was estimated at 148,500,000 pounds by the National Agricultural Statistics Service in their August release - up 600,000 pounds from July.
Market News Web Page:
http://www.ams.usda.gov/mnreports/va_tb144.txt
Last week's hot temperatures continued to stress soil moisture and crops, according to the Georgia Agricultural Statistics Service. Maximum temperatures reached over 100 degrees in many areas of the state. The high temperatures dried out soils as 80 percent of the soils had short or very short moisture.
Soil moisture conditions are mostly short for the tobacco producing area of Georgia. Scattered thunder showers added minor amounts of rainfall to some areas during the last two weeks.
According to the Georgia Agricultural Statistics Service and County Agent estimates, as of August 8, 62 percent of the Georgia Tobacco Crop had been harvested compared to 45 percent this time last year and 67 percent as an average of the last five years. The physical appearance and the curing quality of tobacco remaining in the field has declined greatly across the state of Georgia during the last two weeks as a result of the heat, earlier heavy rains and the following return to drought-like conditions. Upper leaves are being burned by the bright sun and mid stalk leaves continue to exhibit strong green coloring. Curing has frustrated growers who are having problems coloring the leaf in the barns.
Many growers are applying ethephon (Prep, Mature XL) to assist with the coloring of the leaf. Most are receiving mixed results. Growers are reminded that tobacco leaves will only accept ethephon and cause an acceleration of the leaf yellowing if the leaf is nearing true ripeness. Ethephon should not be counted on to remove the hard green color of unripened leaf and at best should be expected to reduce some of the greenish tint of nearly ripe tobacco and assist with the yellowing of process in the barn.
GEORGIA TOBACCO WAREHOUSE RANKING, WEEK 1.
During the first week of sales, the highest average price for the week was found at Farmers Warehouse on the Blackshear Market with an average price of $158.55 per hundredweight. Second highest was Perkins Warehouse on the Nashville Market with an average of $158.18 per hundredweight. Third highest for the week was South Georgia Golden Leaf Warehouse on the Alma Market with an average of $158.13 per hundredweight. The Blackshear Market had the highest average price for the first week with an average of $155.97 per hundredweight.
PHASE II COMMITTEE NEARING ANNOUNCEMENT
Indications are that Governor Barnes is getting closer to appointing a panel will develop a plan to spend the $304 million in tobacco settlement funds over the next dozen years.
The board, which will address the distribution of "Phase II" funds, received by twelve states when cigarette companies agreed to provide specifically for tobacco farmers and quota holders -- separately from the larger financial agreement with 46 states to settle claims for reimbursement for treating sick smokers.
Thank you for visting the Georgia Tobacco Hotline, presented by the University of Georgia Extension Tobacco Team and brought to you by the makers of Orthene 97 granular insecticide with reduced dust and reduced odor.
