Broom, Brush & Mop Nov 2010

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8:27 AM

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November 2010

BROOM, BRUSH & MOP

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U.S. Imports 68 Short Tons Of Broom Corn In August By Harrell Kerkhoff Broom, Brush & Mop Editor According to the U.S. Department of Commerce, a total of 68 short tons of broom corn was imported into the United States during August 2010. The value of this import was $166,766, with a cost per ton of $2,452 ($1.23 per pound). All imported broom corn in August came from Mexico. During the first eight months of the year, 663 short tons of broom corn entered the United States, with a total value of $1,788,571. The cost per ton of this broom corn was $2,698 ($1.35 per pound). Of the 663 short tons of broom corn that entered the United States after eight months in 2010, all but 10 arrived from Mexico. The remaining broom corn came from Indonesia in June.

have more labor costs to consider than in the past. Freight has also become more expensive. This doesn’t directly impact the price of yucca fiber from a processor’s standpoint, but it does have an impact from my standpoint. Gas and oil prices have (increased) over the past month or longer.” Caddy reported that overall business at his company was busy during the past summer and so far this fall. There has been an issue, however, with continuous inspections taking place at the U.S.-Mexican border. This regards the importation of broom corn and brooms. “Once (a trailer) crosses into Laredo (TX), it’s been my recent experience that there will be a (major) inspection take place. They had been pulling just a few items off each trailer before, but during the last week these inspectors have gone through 75 percent of a trailer,” Caddy said. “The (inspectors) who recently pulled (material) off were very good — they didn’t mess anything up. There was customs tape around some bales of broom corn. I don’t know what they were looking for, but they didn’t take any bales apart.” Despite this recent “white glove” inspection, Caddy said there is a charge that he must pay every time this process takes place. “It would be more efficient if they could conduct the inspections in Cadereyta (Mexico) instead of Laredo. That way, the material could be inspected before being loaded into the trailer,” he explained. “It’s important to be very careful when pulling stuff off a trailer in order to protect the merchandise.”

Richard Caddy, of R.E. Caddy & Co., Inc., in Greensboro, NC, felt the broom corn import figures for August were accurate. He said the average price per pound of $1.23 most likely included hurl, insides and raw corn. “I would imagine September’s figures will be close to what we have seen for August,” Caddy said. When interviewed on October 19, he added that Mexican broom corn is plentiful right now, and processors have indicated to him that they should be able to adequately supply his company's needs for the near future. “I have been receiving (broom corn) as of late, but I don’t know if it’s part of the first or second (Torreon) harvest in Mexico. It’s Tim Monahan, of The Thomas Monahan Co., in Arcola, IL, nice and fresh broom corn,” Caddy said. “Everything seems to be said August’s broom corn import statistics show that prices have in order as far as quality is concerned.” eased some compared to earlier in the year. He added, however, Mexican broom corn pricing, meanwhile, has remained steady that 68 short tons of broom corn is not a lot when considering as of the middle of October, he said. Caddy feels this trend shows August is usually a prime month for receiving such material. no immediate signs of ending. When interviewed on October 19, Monahan also said that “There is no overwhelming demand for broom corn right now, despite a slight lowering of Mexican broom corn prices, he doesand we are still able to get what we need,” Caddy said. n’t feel the average price will dip too much lower. When it comes to Broom Corn Imports yucca fiber, he added 2005 2006 2007 2008 2009 2010 Total Cost that quality of this Tons Tons Tons Tons Tons Tons Value Per Ton material is good, while 125 61 116 89 14 48 $165,991 $3,458 ($1.73) January lead times are two to three weeks. Pricing, February 44 215 90 91 21 84 $202,685 $2,413 ($1.21) however, has firmed 65 83 41 50 90 $237,691 $2,641 ($1.32) 77 March up over the past two to April 120 56 48 150 11 54 $200,869 $3,720 ($1.86) three months. May 36 135 172 98 24 77 $231,863 $3,011 ($1.51) “While broom corn June 65 81 63 65 20 108 $245,846 $2,276 ($1.14) prices have been July 124 160 80 66 23 134 $336,860 $2,514 ($1.26) steady and went 177 216 80 76 42 68 $166,766 $2,452 ($1.23) August down earlier in the September 124 152 131 133 22 summer, yucca fiber 133 184 92 123 28 October prices have gone up a November 200 96 160 29 53 bit,” Caddy said. “I December 164 76 101 17 16 think (yucca fiber) 1,389 1,497 1,216 978 324 663 $1,788,571 $2,698 ($1.35) processors probably


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