World Price and Stocks-to-Use Ratio

Discussion
This graph shows monthly world stocks-to-use estimates (in percent) matched against the A-index of world cotton prices (in cents per lb). As usual, stocks-to-use moves in the opposite direction from world prices. An apparent key threshold is 40% world stocks-to-use (dark horizontal line) which is the point where major trends in world prices (either up or down trends) tend to change direction.

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