The A-Index of world cotton prices (the yellow line) generally parallels ICE cotton futures (the green line) at a premium. China’s internal cotton price (the blue line) is higher than world prices, in part from policy distortion. Their government reserve has been whittled down to less than 12 million bales, which reduces some of the artificial price support. The big remaining fundamental questions are 1) what sized reserve will China maintain for the long-term, and 2) what is their policy for rotating that reserve inventory?
Welcome to the educational website of Dr. John Robinson in the Department of Agricultural Economics at Texas A&M University.
The website focuses on farm-level implementation of strategies for Texas cotton growers to deal with yield and price risk. Contact me to receive a weekly e-mail notice of when the latest edition is posted on-line. In addition, we provide daily crop market news and commentary on Twitter (@aggie_prof) and also on the Master Marketer facebook page. We welcome your feedback and interaction in these social media.