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  • 1.3.4-THE WORLD COTTON MARKET-COTTON AND COMPETING CROP PRICES

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  • Cotton and competing crop prices

    Chapter 1 - The world cotton market - Cotton prices 

     
     

    Wheat, maize, soybean, rice and sugar are the major world crops that compete with cotton for planted area, and cotton area will shift up and down depending on relative crop prices. To compare aggregate, or world, price trends among crops, ratios of the Cotlook A Index, converted to dollars per metric ton, are divided by prices for metric tons of wheat, maize, soybeans and sugar at ports in the United States, and rice in Thailand.

     

    Since January 2000, a ton of cotton has cost on average about 8 times as much as a ton of wheat, although the ratio has ranged from 12 down to 6. In 2007, grain prices are relatively high relative to cotton prices because of interest in biofuels, and so the average price of cotton is currently only 6 times greater than the average price of wheat (see figure 1.23). A ton of cotton is usually worth 12 times more than a ton of maize, but the ratio of cotton to maize prices has ranged from 18 to 7 this decade. Because of the current interest in biofuels, the cotton to maize price ratio is only 8 in 2007 (see figure 1.24). A ton of cotton is usually worth 5 times as much as a ton of soybeans, 6 times as much as a ton of rice and 7 times as much as a ton of sugar. Again, because of interest in biofuels, a ton of cotton is worth only 4 times as much as a ton of soybeans or a ton of rice in 2007, and only 6 times as much as a ton of sugar on world markets (see figure 1.25).

     

    1.3.4-en1 

    Source: ICAC

     

    1.3.4-en2 

    Source: ICAC


    1.3.4-en3 

     

    Source: ICAC