Cottonseed and Products

Cottonseed is crushed to produce both oil and meal. Oil is typically used for cooking oil and the meal is fed to livestock. Before the cottonseed is crushed for oil and meal, it is delinted of its linters. Linters are used for padding in furniture, absorbent cotton swabs, and for manufacture of many cellulose products. The sediment left by cottonseed oil refining, called foots, provides fatty acids for industrial products. The value of cottonseeds represents a hefty 18% of a cotton producer’s income.

Prices – The price of cottonseed oil in 2003 rose sharply by 59% to 37.00 cents/pound from 23.34 cents in 2002, and more than double the dismal 2001 price of 15.41. The price of cottonseed meal in 2003 rose to an average $149 per short ton, up from $141.37 in 2002. Cottonseed oil and meal prices were boosted throughout 2003 by the sharp 50% rally seen in cotton prices.

Supply – World production of cottonseed was forecast at 34.83 million metric tons, up from 32.84 million in 2002/3. World ending stocks in 2003/4 are forecasted at 360,000 metric tons, down from 380,000 in 2002/3. World production of cottonseed oil was forecast to rise to 3.74 million metric tons in 2003/4 from 3.49 million in 2002/3. World production of cottonseed meal in 2003/4 was forecast to rise to 11.90 million metric tons from 11.17 million in 2002/3.

US production of cottonseed in 2003/4 rose to 6.689 million short tons from 6.184 million in 2002/3. US stocks fell to 347,000 tons from 400,000 tons in 2002/3. A total of 2.750 million tons of cottonseed were forecasted to be crushed in 2003/4, up from 2.495 million tons in 2002/3.

Trade – World trade in cottonseed was forecast at 1.07 million metric tons in 2003/4, a little higher than 1.06 million in 2002/3. That accounts for only 3% of world production, showing that most countries use the cottonseed domestically.