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  • 1.4.6-THE WORLD COTTON MARKET-USES OF THE COTLOOK INDICES

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  • Uses of the Cotlook Indices

    Chapter 1 - The world cotton market - The Cotlook Indices 

     
     
    The value of the Cotlook Indices as a ‘proxy’ for the world price of cotton, and their transparency and reliability over several decades, mean that today they occupy an important place within the world cotton market. ICAC uses the indices in its price forecasting and economic analysis. Several major producing countries use them either as an element of the domestic support arrangements, or as part of their export marketing systems. In the United States, the Cotlook (NE) Index is the basis for the adjusted world price, which is a key element in the marketing loan component of the United States Cotton Programme.