The WTO Cotton Case and Doha Round: Implications for U.S. Cotton. The WTO Cotton Case and Doha Round: Implications for U.S. Cotton. U.S. Cotton Marketing/Policy Background Cotton Initiative & Brazilian Dispute Impacts and Implications. World Cotton Production 2005/06.
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Estimated Production = 112.36 million bales
“A” Index of World Prices (as of 2/2/06) 59.73 Adjustment to US location and grade -15.44 Adjusted World Price (AWP) 44.29 Loan Deficiency Payment (=Loan-AWP) 7.71
Step 2 Elimination (Reuters)
A Few Assumptions for 2006/07
Supply effects dominate
Small export impacts, w/ smaller equity offers
Step 2 Elimination Impacts
U.S. Options on Marketing Loan, CCP in the next 12-15 months: