Cash Marketing


Market Your Cotton After Harvest

With the right tools, marketing at harvest can help you create opportunities to make your cotton rise to the top. PCCA provides two cash marketing options for our grower-owners to market their cotton after harvest. PCCA offers exclusive access to The Seam®, the world’s largest and most reliable online trading platform. Marketing your cash cotton online allows you to maximize your price. The Seam provides access to virtually all cotton buyers eliminating the need for burdensome manual negotiations. PCCA Direct provides the convenience of receiving competitive prices at your fingertips. It allows our team to reach out to you through the myPCCA app or your co-op gin with an offer to purchase your cotton. 

The Seam

  • Online access to the largest network of global buyers and textile mills
  • Having your cotton offered continuously gives you opportunities to capture sudden rises in the market and capitalize on favorable price movements
  • PCCA’s Loan Advance Program provides upfront cash flow and allows you to trade the equity portion online in a separate transaction
  • LDP payments are automatically processed, when applicable, for eligible cotton
  • Payment deferral option available
  • Participants are patrons of the Marketing Division and receive any dividends allocated by that division

PCCA Direct

  • Sign up to receive and accept bids anywhere on the go with your mobile device
  • Our Sales and Member Services teams can assist with any bids you request or receive
  • Consult with a member of our marketing team to develop the best approach to cash marketing
  • Growers can accept, reject, or counteroffer with the PCCA team through the myPCCA app
  • LDP payments are automatically processed, when applicable, for eligible cotton
  • Payment deferral option available
  • Participants are patrons of the Marketing Division and receive any dividends allocated by that division

Forward Contracts


Market Your Cotton Prior to Harvest

Forward contracts can provide excellent opportunities to lock in pricing on bales. Because these contracts require the delivery of committed bales, this tool is best suited for growers with proven production history.

Advantages

  • Growers can place good-til-canceled (GTC) orders to help them achieve their price target
  • LDP payments are automatically processed, when applicable, for eligible cotton
  • Deferred payment option available

Pool Marketing


Add Value by Capturing Optimal Marketing Opportunities Throughout the Marketing Cycle

Features & Benefits

  • Acreage-based contract eliminates weather-related production risks
  • Managed by a team of professional traders and analysts, allowing you to focus on farming operations
  • Our season-long pricing strategy reduces downside market risks
  • Benefits from PCCA’s global customer network 
  • Timely progress payments distributed as seasonal sales advance
  • Payment deferral option available

How It Works

Our seasonal pool marketing agreement is a contract for acreage, not for a specific number of bales. The grower-owner has the option to contract every bale or every-other-bale of the contracted farm’s production. The agreement remains in effect from year to year unless the grower-owner cancels it during the one-month Sign In /Sign Out Period each year. For more information, please contact your gin or PCCA’s Cotton Services Department.

The Concept

PCCA’s grower-owners have an active voice in the sales strategies for seasonal pools. PCCA’s Marketing Pool Committee guides our Sales team about the production and its risk appetite each year. PCCA monitors farm program benefits, futures markets, other hedging mechanisms, and all cost factors daily to optimize total returns to grower-owners. All farm program benefits related to marketing are processed by PCCA and distributed back to the grower-owners in the payments for their cotton. Unlike some other pools, PCCA pays full USDA loan premiums and discounts on all bales. When conditions warrant, PCCA pays market adjustments to reflect enhanced returns created by specific types of cotton.

PCCA has seasonal pools for West Texas, Oklahoma and Kansas and South Texas. Each pool has its own Marketing Pool Committee comprised of growers elected by their peers.

Payments

PCCA’s Board of Directors sets an initial advance payment rate before harvest. Market conditions and sales pace are the primary drivers of the initial amount. Cotton that is eligible for the USDA’s Marketing Assistance Loan (MAL) receives the loan value as a minimum. Cotton not eligible for the loan gets a payment based on market values and will be enhanced if its value increases. Customary warehouse charges are deducted from the initial price. PCCA distributes progress payments resulting from new sales. After PCCA’s year-end on June 30 each year, a dividend is declared and allocated to members of the pool.

Costs

Pool members receive the full value achieved from the sale of their cotton less an administrative fee composed of the costs incurred in marketing. PCCA’s fee is the lowest among pools who disclose their fees and is generally one or two dollars a bale below the cheapest competitor. Year-in and year-out, PCCA pool members will pay much less for marketing than they would selling through other avenues, and they will always receive the full benefits of price achieved, quality and weight gains, and any savings in shipping and handling costs.

Grower Input

Each pool has a Marketing Pool Committee of representatives elected from among its members. The committees meet with PCCA staff on a regular basis where they receive market reports, discuss sales strategies, and authorize the marketing division to sell cotton according to current conditions.

Pima Marketing Pool


Capture Added Value From Specialty Fiber

Pima cotton is world-renowned for its use in ultra-high-quality textiles and apparel. Growers in West Texas are increasing the acreage of Pima to capture the added value from this specialty fiber. PCCA’s Pima Marketing Pool provides a trusted, local solution to reach expanding global markets.

Our Pima Marketing Pool is an acreage-based agreement that automatically renews each season unless the grower-owner elects to cancel it each year during the annual Sign Out Period.

PCCA’s Board of Directors sets an initial advance payment rate at harvest and makes payments to growers as cotton is received and sold. As grower-owners of PCCA, Pima Pool members are also eligible for a year-end dividend.

For more information about PCCA’s Pima Marketing Pool, please contact David Canale or Andrew Sprague at (806) 763-8011.

Features & Benefits

  • Acreage-based contract eliminates weather-related production risks
  • Managed by a local team of professional traders and analysts, allowing you to focus on your farming operations
  • Benefits from PCCA’s global customer network
  • Timely progress payments distributed as seasonal sales advance
  • Payment deferral option available

Get in Touch with PCCA Today!

We are available to answer your questions and to assist with all of your marketing needs.

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