
Georgia Tobacco Hotline
August 23, 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
- Georgia Tobacco Warehouse Ranking
- Phase II Committee Nearing Announced
- 39th Tobacco Workers' Conference
GA-FL FLUE-CURED TOBACCO MARKET REPORT
WEEKLY SUMMARY FOR WEEK ENDING THURSDAY, AUGUST 19, 1999
According to the USDA AMS Tobacco Market News Service, the fourth week of Georgia-Florida flue-cured tobacco auctions were marked by mixed grade averages and more upper stalk tobacco.
Demand was not quite as strong as indicated by an increase in loan receipts. The volume of sales was fairly heavy on the Florida markets, while the other markets ranged from moderate to light. Producers' sales opportunity for next week is 11,484,000 pounds. According to the latest figures, around 24 percent of the 1999 effective quota has been auctioned.
Gross Sales by States and Type follow:
State /
Type
Weekly
Pounds
Weekly
Average
Season
Pounds
Season
Average Florida
1,655,228
$165.55
5,580,634
$156.34 Georgia
4,929,809
$156.86
18,440,209
$151.56 Total
6,585,037
$159.04
24,020,843
$152.67
The weekly general average of $159.04 was up $8.04 from the previous week. After 15 sales days last season, 24.1 million pounds had averaged $145.68 per hundred.
Of the overall bid averages this week, 50 percent declined, 45 percent increased, and 5 percent was unchanged. However, among the heavy volume marketings, there were twice as many gains as losses.
Most increases were $1 to $3, while decreases were $4 to $13, with the larger declines centered on nondescript and unripe offerings. The bulk of upper stalk sales ranged from $168 to $185, with lugs and primings averaging between $152 and $167 per hundred. A comparison of bales to sheets showed bales bringing the same to $8 higher, in most cases.
More leaf (B) tobacco made its way onto warehouse floors, while a similar decrease was noted in primings (P). Group percentages were as follow: leaf - 22, up 20 points; smoking leaf - 1; cutters - 13; lugs - 42; primings - 11, down 22; and nondescript 10 percent. Fair and low quality tobacco combined, rose 9 points and accounted for 78 percent of sales. Maturity of offerings was lower, as unripe and immature grades together totaled 34 percent of all auctions, up 11 points.
This week's loan receipts were the highest so far this season, as 9.3 percent of sales was delivered to the Flue-Cured Stabilization Corporation. For the season, 4.2 percent has been placed under loan, compared with 6.8 percent at the same point last year.
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 |
| B4F | $185 | Unchanged | Up $1 |
| B4KM | $176 | Up $2 | Up $6 |
| C4F | $173 | Up $2 | Up $5 |
| C4KM | $168 | Up $2 | Up $4 |
| X4L | $166 | Up $3 | Up $8 |
| X3F | $167 | Up $1 | Up $5 |
| X4F | $164 | Up $1 | Up $6 |
| X4KM | $157 | Down $1 | Up $2 |
| P4F | $152 | Down $4 | Up $5 |
| N1XO | $115 | Down $13 | Down $16 |
Market News Web Page:
http://www.ams.usda.gov/mnreports/va_tb144.txt
According to the Georgia Agricultural Statistics Service, hot and dry conditions continued over much of the state last week. Scattered showers provided short- term relief for the areas that received them. Irrigation continued over many areas of the state, but there was concern over water levels of ponds, wells, and streams. Soil moisture condition was steady as 81 percent of the soils had short to very short topsoil moisture, unchanged from the previous week.
According to the Georgia Agricultural Statistics Service and County Agent estimates, as of August 20, 83 percent of the Georgia Tobacco Crop had been harvested compared to 67 percent this time last year and 84 percent as an average of the last five years.
GEORGIA TOBACCO WAREHOUSE RANKING, WEEK 2.
During the second week of sales, the highest average price for the week was found at Roy Pearce Tobacco Warehouse on the Valdosta
Market with an average price of $157.34 per hundredweight. Second highest was South Georgia Golden Leaf Warehouse on the Alma Market with an average of $156.83 per hundredweight. Third highest for the week was Growers Warehouse on the Douglas Market with an average of $156.03 per hundredweight. The Blackshear Market had the highest average price for the first week with an average of $154.64 per hundredweight.
The first MH residue report for the season of samples analyzed for the Tobacco Industry Leadership Group was received this week. Considering the dry season experienced in Georgia, the levels look good. With 24 samples analyzed for the season MH residue levels are averaging 74 ppm across all belts. Georgia-Florida type 14 is averaging 103 ppm with a high so far of 291 ppm. South Carolina type 13 stands at 62 ppm with a high of 125 ppm. North Carolina border belt type 13 is averaging 38 ppm. Reports from other belts are yet to be released from the laboratory.
According to the Associated Press, last week Governor Barnes appointed a panel of six members who will develop a plan to spend Georgia's $304 million in tobacco settlement funds over the next dozen years. The first year the committee will have $22.2 million to decide how to distribute among Georgia tobacco growers and quota holders.
Former State Revenue Commissioner, Marcus Collins was named to administer the new panel. He will administer a panel comprised of:
D. Lamar DeLoach, a Statesboro farmer and president of the Tobacco Growers Association of Georgia;
J. Wayne Dollar, president of the Georgia Farm Bureau Federation;
Elizabeth Moore, a farmer from Alapaha;
Frank R. Pidcock IV, a tobacco warehouseman from Moultrie;
Donnie Smith, a Willacoochee farmer, and
Pearlie Toliver, a Macon banker.
The law creating the board, passed during the last legislative session, requires two board members to be active tobacco growers and stipulates that two must be tobacco quota owners.
39TH TOBACCO WORKERS' CONFERENCE
The 39th Tobacco Workers' Conference (TWC), which will be held at the Colonial Williamsburg Lodge in Colonial Williamsburg, Virginia on JANUARY 10-13, 2000. Committee meetings and an evening reception are scheduled for Monday, January 10th. Concurrent technical sessions will follow the morning general session on Tuesday, January 11th, and will run through noon on Thursday, January 13th. An awards banquet and entertainment are planned for Wednesday evening, January 12th.
The Spouse's program includes a 3-day pass to Colonial Williamsburg and outlet/craft/antique shopping.
All members of the tobacco industry are invited to review the registration information on the following web site in preparation for registering and attending the Conference:
http://www.conted.vt.edu/tobacco.htm
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.