MMM 365

July 16, 1998

UPDATE: South Carolina tobacco markets are opening on July 28th about one week later than last year. This is a weather crop with some areas hurt severely by drought. Yields and quality will likely be below the past couple of years.

Given all the turmoil in the industry, it is currently unknown how the companies, exporters, and dealers will react. Much of this is dependent upon such factors as the Tobacco Settlement, potential taxes, and possible changes in regulations and restrictions. In turn, this will affect estimates on future domestic usage, exports of U.S. manufactured cigarettes, and leaf exports.

As the market opens, it does not appear that legislative action will happen in the near future or possibility before next year. If so, this could mean another year (or more) with the current program and possibly this could give some stability to the market. If we remain with the current program, projections are for a reduction in 1999 quota. Based on the above situation, it is projected that 1998 loan receipts will likely be at least ample.

S.C. TOBACCO CROP: The weather has not cooperated which means good tobacco will be in short supply. Growers need to take special care to ensure they put the highest quality product on the warehouse floor. If buyers pick-and-choose, this could be the year that harvesting is of utmost importance. Although most S.C. producers take extra care and follow excellent management practices to ensure the highest possible quality, it is important to review some of these factors. These include: harvest three or more stalk positions; market only clean/uniform packaged tobacco (whether sheets or bales); and, use only labeled rates of recommended pesticides. Although difficult with a dry year, growers should attempt to harvest and cure mature, ripe leaves, being careful with the curing process.

MARKETING SCHEDULE: The South Carolina marketing schedule for 1998 follows. This schedule is based on the X Schedule by Tony Fowler, USDA Tobacco Division in Raleigh, NC. The approximate thousand pounds per sale (reported under the market title) are calculated for each set of buyers and may vary slightly during the season. This schedule is based on 11 sets of buyers in Area B. The first 11 sales are accelerated with 115 percent of the regular sale rate. This should help move the old crop and initial 1998 offerings out of the way before other areas open.

The sale rotation is changed to accommodate market shifts, etc. Table 1 shows the balance of the schedule by the number of sales by day of week for each market. For a three-day week, Tuesday becomes the 1st day and Thursday is the 3rd day. The first week will be a three day week this year as Area B had to coordinate with the other flue-cured areas.

The "sandtraps" (markets that share sets of buyers) are different this year. This was necessitated by such factors as the change in quota, designation, etc. Three sets of buyers are assigned the DARL-TIMM, LAKE CITY, and KING-HEMI markets. MULLINS has two sets of buyers again. LORIS shares two sets of buyers with FAIRMONTBL in N.C. CONWAY is in the sandtrap with CLARK-CHAD, N.C. and they have one set of buyers. Completing the 11 sets of buyers for Area B is LUMBERTON, N.C. with one set and TAB-WHITE, N.C. with two sets.

1998 SOUTH CAROLINA TYPE 13 TOBACCO MARKET SCHEDULE
		Sale	Week	Conway	Darl-Timm	King-Hemi	Lake City	Loris	Mullins
Month	Day	#	Day	386	371	375	397	398	393
- - - - -	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	28	1	Tu		X	X	X	X	*
JULY	29	2	We	X	X	X	X		*
	30	3	Th			X	*		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	3	4	Mo		X		*		*
	4	5	Tu			X	*	X	*
	5	6	We	X	X	X	X		*
	6	7	Th			X	*		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	10	8	Mo	X	X	X	X	X	*
	11	9	Tu			X	*		*
	12	10	We		X		*		*
	13	11	Th	X	X	X	X		*
AUGUST	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	17	12	Mo			X	*	X	*
	18	13	Tu		X	X	X		*
	19	14	We	X		X	*		*
	20	15	Th		X	X	X	X	*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	24	16	Mo		X		*		*
	25	17	Tu	X	X	X	X		*
	26	18	We			X	*		*
	27	19	Th		X	X	X	X	*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	31	20	Mo	X	X	X	X		*
	1	21	Tu			X	*		*
	2	22	We		X		*	X	*
	3	23	Th	X		X	*		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	8	24	Tu		X	X	X		*
	9	25	We			X	*		*
	10	26	Th	X	X	X	X	X	*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	14	27	Mo		X		*		*
	15	28	Tu	X	X	X	X		*
	16	29	We			X	*		*
	17	30	Th			X	*	X	*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	21	31	Mo	X	X	X	X		*
	22	32	Tu			X	*		*
SEPTEMBER	23	33	We	X	X	X	X	X	*
	24	34	Th		X		*		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	28	35	Mo			X	*	X	*
	29	36	Tu	X	X	X	X		*
	30	37	We		X	X	X		*
	1	38	Th		X		*		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	5	39	Mo	X	X	X	X		*
	6	40	Tu			X	*	X	*
	7	41	We			X	*		*
	8	42	Th	X	X	X	X		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	13	43	Tu			X	*		*
	14	44	We		X		*	X	*
OCTOBER	15	45	Th	X	X	X	X		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	19	46	Mo			X	*		*
	20	47	Tu	X	X	X	X	X	*
	21	48	We			X	*		*
	22	49	Th		X	X	X		*
	- - -	- - -	- - -	- - - -	- - - - -	- - - - -	- - - -	- - - -	- - -	-
	26	50	Mo	X	X	X	X		*
	27	51	Tu			X	*	X	*
	28	52	We		X		*		*
	Note: "X" means one-set of buyers; "*" means two-sets of buyers.

THE CLEMSON UNIVERSITY COOPERATIVE EXTENSION SERVICE OFFERS ITS PROGRAMS TO PEOPLE OF ALL AGES, REGARDLESS OF RACE, COLOR, SEX, RELIGION, NATIONAL ORIGIN, OR HANDICAP AND IS AN EQUAL OPPORTUNITY EMPLOYER.
COOPERATIVE EXTENSION WORK IN AGRICULTURE AND HOME ECONOMICS--STATE OF SOUTH CAROLINA, CLEMSON UNIVERSITY, U.S. DEPARTMENT OF AGRICULTURE, AND SOUTH CAROLINA COUNTIES COOPERATING.

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updated 7/20/98