|
|
|
|
|
|
U.S. DEVELOPMENTS
Highlights:
The Farm Service Agency announced on November 21st that U.S. cigarette manufacturers bought 402.4 million pounds of burley tobacco during the 1996 marketing season which runs from October 1, 1996 through September 30, 1997. The manufacturers’ purchase intentions for the 1996 burley crop year were 424 million pounds. The 1997 purchases were 95 percent of their previously stated intended purchases. The Agricultural Adjustment Act of 1938, as amended, states that if producer marketings equal or exceed the effective national quota each major cigarette manufacturer must buy at least 90 percent of its purchase intentions or they will be assessed a penalty. This year, producer marketings fell below the effective national quota and the manufacturers’ purchase requirements were reduced to 64.5 percent of their stated intentions
Auction Reports:
The 1997 U.S. flue-cured auction season ended on Tuesday, November 18th with the closing of the Danville auction market. Through a total of 66 sale days, total flue-cured gross sales reached 496,995 metric tons this year at an average price of $3.80 per kilogram. This represents increased sales of over 11 percent, and an decrease in the average price of nearly 7 percent when compared to the 1996 U.S. flue-cured auction season. All belts reported increased sales activity with the exception of the Georgia and Florida type 14 belts which reported lower sales. This year, prices averaged lower in all belts compared to 1996. Nearly 18 percent of sales went under loan in 1997 compared to less than 1 percent during the 1996 auction season.
United States Flue-Cured Auction Update FINAL November 18, 1997 |
||||||
1996 Season |
1997 Season |
|||||
| Gross Sales | Loan Receipts |
Gross Sales | Loan Receipts |
|||
| TYPE | Tons | $/kg |
% |
Tons | $/kg |
% |
| Ga. | 55,153 |
4.00 |
0.1 |
47,550 |
3.78 |
5.9 |
| Fl. | 10,194 |
3.99 |
0.2 |
9,489 |
3.80 |
13.4 |
| TYPE 14 | 65,346 |
4.00 |
0.1 |
57,039 |
3.78 |
7.2 |
| S.C. | 50,718 |
4.02 |
0.2 |
55,075 |
3.83 |
13.7 |
| N.C. | 42,178 |
4.00 |
0.1 |
53,077 |
3.80 |
20.7 |
| TYPE 13 | 92,895 |
4.01 |
0.1 |
108,152 |
3.82 |
17.1 |
| TYPE 12 | 163,291 |
4.04 |
0.5 |
200,736 |
3.81 |
18.5 |
| VA | 45,310 |
4.12 |
0.1 |
49,348 |
3.80 |
20.1 |
| N.C. | 74,669 |
4.12 |
0.1 |
81,720 |
3.77 |
23.2 |
| TYPE 11 | 119,978 |
4.12 |
0.1 |
131,068 |
3.78 |
22.1 |
| ALL FLUE | 441,511 |
4.05 |
0.2 |
496,995 |
3.80 |
17.8 |
Source: Daily Tobacco Market News Comparison Report.
|
|