Producers' or net sales at auction for 1999 totaled 645,009,189 pounds, representing 96.1 percent of the effective quota. Non-auction sales reported through November 17 of 8,811,849 pounds accounted for another 1.3 percent.

Generally speaking, season bid averages for fair quality or better tobacco, that graded in either ripe or mellow categories, was steady to a few dollars higher than for the 1998 crop. Unripe grades in all groups were down from last year by mainly $3 to $10. Nondescript tobacco lost mostly $6 to $18, with some down as much as $52 per hundred pounds. Ripe and mellow upper-stalk bid averages were between $178 and $188, with a few up to $191. The lowest quality in these categories sold for $166 per hundred. Unripe leaf brought $160 to $178, except for grade B3KM which averaged $183. Immature leaf grades ranged from $149 to $158. In the cutter group, most bid averages were in a range of $168 to $177. Ripe lugs sold from $150 to $169, with unripe grades at $132 to $161. Better quality primings ranged from $150 to $162, with lower quality at $125 to $137. Nondescript grades ranged from a low of $84 for grade N2, to a high of $153 for N1K. Comparing bid averages between bales and sheets, the higher the support price, the smaller the spread. Bales averaged from $1 to $17 higher than sheets, with an average difference of around $4.50 per hundred pounds overall.

Relatively small changes were noted in stalk position from the 1998 crop, but both quality and maturity declined in most areas. Looking at quality, total crop figures showed a 9 percentage point drop in good tobacco, with increases in fair and low grades. Good quality by type ranged from a low of 10 percent for Type 14 to a high of 23 percent for Type 11. Sales grading premature to mellow were down 8 percentage points. Type 11 sales showed a 4 percent increase to 83 percent, but other areas were down from 10 to 21 points from their 1998 level. Percentages (Rounded) by group, quality, and maturity follow:

The Flue-Cured Stabilization Corporation received 136.4 million pounds or 21.2 percent of producers' sales this season. Last year, 81.6 million pounds, or 10.0 percent, were placed under loan. Net loan receipt percentages by Type for 1999 were as follow: Type 11 - 16.5; Type 12 - 18.1; Type 13 - 37.4, and Type 14 - 14.3 percent.

USDA AMS TOBACCO MARKET NEWS

Market News Web Page http://www.ams.usda.gov/mnreports/rl_tb104.txt

GEORGIA TOBACCO WAREHOUSE RANKING, WK 12

After the twelfth week of sales and the end of the 1999 season, ending October 21, 1999, the highest average price for the season was found at Farmers Warehouse on the Blackshear Market with an average price of $176.08 per hundredweight. Second highest was Big Z and Planters on the Blackshear Market with an average of $175.37 per hundredweight. Third highest for the week was South Georgia Tobacco Growers on the Moultrie Market with an average of $172.86 per hundredweight. The Blackshear Market had the highest average price for the season with an average of $175.61 per hundredweight.

MH RESIDUES

As of the November 4, 1999 MH residue report, with 380 samples analyzed for the Tobacco Industry Leadership Group MH residue levels for the season averaged 78 ppm across all belts. Georgia-Florida type 14 averaged 95 ppm. South Carolina type 13 averaged 91 ppm. North Carolina border belt type 13 averaged 98 ppm. North Carolina Eastern belt type 12 averaged 95 ppm. North Carolina Middle Belt type 11-B averaged 53 ppm. North Carolina Old Belt type 11-A averaged 36 ppm. Virginia Old Belt type 11-A averaged 27 ppm.

BALING UPDATE

(From the Flue-Cured Tobacco Stabilization Newsletter, November 1999) Various tobacco market prognosticators were predicting way back in the spring of 1999 that 50 to 60% of this year's flue-cured tobacco crop would be sold in bales. It looks as if their predictions are going to be very close to being right on the money as the end of this season draws near.

Through October 28 th , 54% or 371,165,257 pounds of the total 691,938,131 gross pounds of tobacco sold was baled.

Following is a breakdown of baling by type:

NEW INSECTICIDE LABELED FOR TOBACCO

Novartis Crop Protection has recently been granted a label for use of Fulfill 50WG on tobacco for systemic control of aphids and certain other sucking insect pests, including whiteflies, plant bugs and some leafhoppers. Fulfill 50WG contains the active ingredient pymetrozine, a compound that belongs to a new chemical class known as pyridine azomehtines. Pymetrozine exhibits a unique mode of action which is described as neural inhibition of feeding behavior. Affected insects stop feeding within a few hours after exposure

PHASE II PAYMENT PROGRESS

The State Community Development Board met recently and set the payment rate for 1998 at 25 cents per pound split between the quota owner and the 1998 producer. Estimates are that 60 to 70 percent of the checks to be written will be mailed by the end of the year. Problems exist with forms which were either not received, not completed properly or not returned on time. An additional mailing of checks is expected in April. In addition, the committee has devised a means for handling contested forms and those on which the proper signatures were not included or were unattainable.

DISASTER ASSISTANCE FUNDS IN APPROPRIATIONS BILL

The Congress passed and the President signed year 2000 agriculture appropriations bill including $8.7 billion in FY 2000 emergency funding to assist farmers who have endured economic losses and natural disasters. The bill includes $328 million in payments to burley and flue cured tobacco growers as partial compensation for quota losses from the 1998 basic quota cut. This amounts to $1 per pound lost in each tobacco type to cuts in quota after 1998. These funds are expected to be distributed by the state committees appointed to distribute the Phase II funds. As well, the funds are expected to be split 50/50 between quota owners and producers of the 1998 crop.

QUOTA CALCULATIONS

With the 136,400,000 pounds taken by Stabilization during the 1999 season added to the 136,700,000 already in storage from the 1997 and 1998 seasons, it appears evident that a good deal of the excess tobacco must be unloaded to reduce to effects of these stocks on the year 2000 quota. At the same time excessively discounting the stocks to move them into the trade would most likely result in dramatic increases in the No Net Cost assessment to both producers and purchasers. Additionally, the three year average of export sales is down from the previous year. Company buying intentions are to be announced on December 1, with the year 2000 quota to be announced on December 15.

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