Official Spot Cotton Quotations, Where and How Quoted

Excerpts from the report: Since 1916, the U. S. Department of Agriculture has administered and supervised an official system for quoting "spot" cotton prices. For years these quotations were used chiefly within the "cotton trade." Departmental supervision then mainly consisted of arbitrating differences in opinion among the trade. Now, under Government price support programs, the supervising agency must answer for the reliability of the quotations to growers and all other branches of the industry. The study agreed upon had two phases. One dealt with statistical measurements of the accuracy of quotations in reflecting actual prices paid for various qualities of cotton in designated market areas. Such analyses have been under way since August 1959. This report covers the second phase, which was concerned with the framework of the quotations system--the markets, the resident firms, and the organization and activities of the quotations committees during the 1959-60 season. Specific objectives were (1) to reappraise the currently designated markets as to suitability for use as a major source of sensitive price information; and (2) to determine the organization of and practices followed by the quotations committees. This report also includes a brief account of services provided and problems faced by the various types of cotton firms, especially as related to the quotations.