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U.S. DEVELOPMENTS
Highlights
Flue-Cured Purchase Intentions: The U.S. Department of Agriculture announced that U.S. cigarette manufacturers plan to purchase 286 million pounds (farm sales weight) of flue-cured tobacco from the 2000 crop. Major domestic cigarette manufacturers are required by law to report intended purchases of flue-cured tobacco from the U.S. auction markets and producers annually to USDA. These data along with the average level of exports for the preceding three years and the amount of flue-cured tobacco needed to attain reserve stock levels are used to determine the annual flue-cured tobacco marketing quota.
Provisions of the 2000-Crop Flue-Cured Tobacco Program: The U.S. Department of Agriculture announced that the national marketing quota for the 2000 crop of flue-cured tobacco is 543 million pounds, down from the 1999 quota of 666.2 million pounds. The national marketing quota was based on the following:
| Purchase intentions by domestic cigarette manufacturers: | 286.0 Million Pounds |
| Unmanufactured exports (3 year average): | 334.1 Million Pounds |
| Reserve stock adjustment: | -92.9 Million Pounds |
| Secretary’s discretionary adjustment: | 19.4 Million Pounds |
| 2000 Flue-Cured Quota: | 543.0 Million Pounds |
Price Support Grade Loan Rates for Cigar Binder Types 54-55 Tobacco: The U.S. Department of Agriculture issued price support grade loan rates for the grades of 1999 crop cigar binder tobaccos, type 54 and 55. The rates for cigar binder, types 54 and 55, range from 40 cents to $1.50 per pound. The 1999 rates are based on the average support level of $1.238 per pound announced March 1,1999, for types 54-55 and 42-44. For 1998, the average support level was $1.212 per pound.
Auction Reports:
1999/2000 U.S. Burley Auction Update: Through the second week of the burley tobacco auction season prices were fairly steady, despite a decline in the quality of marketings. Loan receipts remained high, compared to last year, and volume was heavy. Total gross sales of U.S. burley tobacco (type 31) reached 161,751 tons, down 5 percent from the same period last year. Sales of Virginia fire-cured (type 21) and Virginia sun-cured (type 37), and green river tobacco (type 36) are reported to be higher so far this year. Sales of eastern district fire-cured (type 22) and western district fire-cured (type 23) are schedule to begin in January 2000.
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