MEMPHIS, Tenn. - Growers who traded their cotton bales online this marketing year received an average of 11.14 cents per pound over the Commodity Credit Corp. loan rate, according to The Seam, an Internet-based global marketplace for the buying and selling of cotton. The analysis is based on all grower-to-business transactions on the The Seam since last Aug. 1.

The premium was more than 14 cents per pound higher than the previous season. This year, growers trading online were in position to take advantage of strong harvest time prices after New York Board of Trade futures prices rallied in early September.

Based on average yields of 634 pounds per acre nationwide, this year’s return yielded an additional $70.65 per planted acre above the CCC loan rate. The report was based on sales of 774,497 bales.

The Seam’s member-growers use its Domestic Trading system to offer their bales to a community of more than 75 buyer firms. Sellers are guaranteed by The Seam to receive payment when their cotton is sold. The online company also clears the transaction on behalf of both buyer and seller.

“Timing is one of the keys to success when selling cash cotton, “said Crawford Tatum, The Seam’s director of Trading Services. “For growers, having their cotton in the market when it peaks is the best way for them to achieve their objectives. That’s why we encourage them to get their cotton offered as soon as possible after harvest.”

The Seam also announced that its certified FiberMax offerings produced a 13.44-cent per pound premium over the CCC loan rate on lots of predominantly certified bales. Bales of certified FiberMax cotton are automatically branded online through a partnership between The Seam and Bayer CropScience.

e-mail: erobinson@primediabusiness.com