ABSTRACT

In order to develop information about the price of cotton quality, the price-quality relationships of U.S. cotton are investigated by examining the cotton basis attributable to the quality characteristics such as color and leaf grade, staple length and strength, and micronaire for several major production regions. By using data from daily cotton contracts, a hedonic price model is estimated for the implicit price of heterogeneous cotton quality characteristics. In this study, the information on the estimated implicit prices is merged with the information from earlier analyses to show evolving regional price-quality relationships in U.S. cotton over several recent marketing years.