RL_TB104 RALEIGH, NC USDA FEDERAL-STATE FLUE-CURED TOBACCO, TYPES 11 THROUGH 14 SEASON REPORT NOVEMBER 3, 2000 A good demand was shown for the small crop of flue-cured tobacco sold at auction during the 2000 marketing season. A great majority of grade bid averages were up from the previous year, and the volume of tobacco placed under loan decreased dramatically. A relatively ideal growing season in most areas led to one of the better quality crops in recent years, with only the Type 14 area undergoing drought conditions early. Both total volume and value were down from 1999, due to the 18 percent decrease in the effective quota. Sets of buyers and graders declined again this season, from 37 to 31. Approximately 66 percent of the volume sold was marketed in bales as opposed to sheets. Nonauction sales, aided by contracting, increased substantially this year. Early auctions contained an estimated 45.3 million pounds carried over from 1999 production, mostly in the Old Belt. Sales began August 1, and ended November 2, after 53 days. All areas except the Old Belt, however, were closed by October 19. Gross sales for 2000 and 1999 seasons (in million pounds and dollars per hundred) and change from previous season follow: Type 2000 lbs. avg. change 1999 lbs. avg. Type 11 135.0 $182.54 up $ 6.19 205.8 $176.35 Type 12 218.6 $179.62 up $ 5.17 271.8 $174.45 Type 13 132.2 $177.32 up $ 6.77 147.0 $170.55 Type 14 88.9 $174.86 up $ 4.95 87.1 $169.91 All Flue 574.7 $179.04 up $ 5.40 711.7 $173.64 Producers' or net sales at auction for 2000 totaled 513,814,475 pounds, representing 91.7 percent of the effective quota. Nonauction sales reported through November 2 of 49,874,596 pounds accounted for another 8.9 percent, compared to 9.2 million nonauction last year. Preliminary figures from the USDA-FSA show nonauction sales averaging just under $180 per hundred pounds. Gross volume, at auction, for the 2000 crop was down 137.0 million pounds or 19.3 percent, while gross value slipped $206.9 million or 16.7 percent. Over 77 percent of all grade bid averages was higher than last season's, with 13 percent lower, and 10 percent unchanged. Losses of $1 to $6 were recorded on immature lugs and low quality primings, with nearly all other tobacco showing gains. Ripe leaf and smoking leaf offerings were steady to $6 higher, with average bids ranging from $183 to $189 in most cases. Unripe leaf grades were mostly $6 to $8 higher at $175 to $184, with immature leaf offerings up $8 to $12 at $149 to $158 per hundred. Grades in the cutter group gained mostly $1 to $3, with a few up as much as $9 from last year. Bids for ripe cutters were from $172 to $182, with less desirable grades bringing $151 to $166. Better lug offerings were up $2 to $6, at $155 to $169, while immature lugs sold from $132 to $141 per hundred. The more desirable grades of primings gained $2 to $6 from last season, bringing $152 to $164. Bid averages for lower quality primings were between $116 and $132. Nondescript grades were mainly $2 to $5 higher this season, with most bids from $95 to $127 per hundred. Tobacco sold in bales brought about the same as sheets for the higher supported grades, but was $3 to $6 higher for a majority of other offerings. More "ripe" tobacco was delivered to auction floors this season, as offerings grading mature to mellow increased 9 percentage points to 81 percent, the highest level since the 1974 crop. Unripe and immature dropped a similar amount to 18 percent. From a quality standpoint, tobacco classed as "good" was up 7 points to 23 percent, "fair" remained at 66 percent, and "low" slipped 6 points to only 9 percent of all sales. The group or stalk position picture changed relatively little, with a few more cutters and lugs on floors with less primings. Major colors this season were orange at 39 percent, ripe variegated grades 32 percent, and unripe variegated at 17 percent. Season percentages (Rounded) by group, quality, and maturity follow: grp grp grp grp grp grp qual qual qual qual qual Type B H C X P N 2 3 4 5 6 Type 11 64 2 11 16 7 1 1 27 65 6 - Type 12 61 4 13 19 2 1 - 22 68 8 - Type 13 62 2 11 20 5 1 - 24 63 12 - Type 14 54 6 5 14 17 4 - 14 69 12 1 All Flue 61 3 11 18 6 1 1 23 66 9 - Maturity Type 11 Type 12 Type 13 Type 14 All Premature-Mellow 85 80 81 75 81 Unripe-Immature 14 19 18 21 18 The Flue-Cured Stabilization Corporation received 27.2 million pounds or 5.3 percent of producers' sales this season. Last year, 137.0 million pounds, or 21.3 percent, were placed under loan. Net loan receipt percentages by Type for 2000 were as follow: Type 11 - 4.7; Type 12 - 3.8; Type 13 - 7.4, and Type 14 - 6.9 percent. PREPARED: B.C. LANGSTON 11:00e NOVEMBER 3, 2000 bcl Questions? Contact: USDA AMS TOBACCO MARKET NEWS 1306 ANNAPOLIS DRIVE Market News Web Page RALEIGH, NC http://www.ams.usda.gov/marketnews.htm (919) 856-4550