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Trends in Foreign and U.S. Cotton Stocks/Use (Scroll Down for More Discussion)

Graph of speculative traders in cotton futures

Discussion

The green bars above show the annual ending stocks-to-use ratio for the foreign (including China) producing and using countries, while the purple bars show U.S. annual ending stocks-to-use. The blue line is the A-index of world prices.

The thing to notice is that the foreign trend for the last three years is declining stocks-to-use. This is expected to continue for 2008/09, which creates the potential for 1) strong imports by foreign countries of U.S. cotton, and 2) potential market rallies given production problems (or rumors of production problems).

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The Cotton Marketing Planner
http://agecon2.tamu.edu/people/faculty/robinson-john/

Dr. John R. C. Robinson
Associate Professor
Extension Economist-Cotton Marketing
Department of Agricultural Economics
Texas A&M University
2124 TAMU
College Station, TX 77843-2124
Phone: (979) 845-8011
Fax: (979) 845-4906
Email: jrcr@tamu.edu