The Department of Agriculture’s Commodity Credit Corporation announced that the competitiveness payment program payment rate in effect from 12:01 a.m., Eastern Time, Friday, May 20, 2016, through midnight, Eastern Time, Thursday, June 16, 2016, is zero. The next ELS payment rate announcement will be on June 16, 2016, at 4 p.m., Eastern Time.
ELS competitiveness payments are provided whenever, for 4 consecutive weeks, the lowest Friday through Thursday average adjusted price quotation for foreign growths (LFQ) is less than the Friday through Thursday average price quotation for U.S. Pima cotton, CFR Far East (USPFE); and the adjusted LFQ is less than 134 percent of the current crop year loan level for ELS cotton grade 2, staple 46, micronaire 3.5 or higher, strength 37.5 grams per tex and above (81.35 cents per pound).
Future payments will be established if price conditions warrant. Relevant data for the ELS competitiveness program follow:
Fri/Thurs LFQ as % USPFE
Period of ELS USPFE LFQ Less Payment Dates
Ending Loan Rate Price Price LFQ Rate Applicable
………. cents/lb ………..
04/28/16 159.53 144.00 146.04 -2.04 0.00 (04/29-05/05)
05/05/16 159.53 144.00 146.04 -2.04 0.00 (05/06-05/12)
05/12/16 159.53 144.00 146.04 -2.04 0.00 (05/13-05/19)
05/19/16 159.53 144.00 146.04 -2.04 0.00 (05/20-06/16)
The adjusted LFQ = LFQ adjusted for the transportation cost between the United States and the Far East. Effective with this announcement, the transportation adjustment to the LFQ for calculating the LFQ as a percent of the ELS loan rate is 16.26 cents per pound.