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).
Return to Cotton Marketing Planner Newsletter.