Extra Long Staple cottons are used to produce the highest valued yarns in the world. While the best upland cottons generally produce yarns up to 50 English count, ELS cottons can produce yarns beginning at 60 count and higher. The ELS market is relatively small -- accounting for only about 5 percent of total world cotton consumption. And, traditionally, demand for ELS cottons has been relatively inelastic and there has not necessarily been any direct correlation between ELS prices and upland cotton prices. As a result, it is difficult to hedge ELS cottons in a traditional sense and, therefore, requires a somewhat different marketing perspective.

In discussing the marketing of ELS cottons, my comments will generally be from the perspective of marketing American Supima cotton, inasmuch as I would guess it is the ELS cotton with which most of you are interested, as well as being the ELS cotton with which I am most familiar. Of course, we cannot discuss the marketing of American Pima cotton without incorporating other ELS cottons into our discussion and so, in essence, we will indeed be covering ELS cotton marketing in a general way as well.

The successful marketing of any product requires an understanding of three key ingredients:

(a) The need to identify and know your markets; (b) The need to know your product; (c) The need to know your competition.

Inasmuch as previous presentations have discussed the overall American Pima supply and demand situation, I will try to avoid focusing on the general fundamentals and will concentrate on the specific numbers that are particularly relevant to the marketing -- or the selling -- of ELS cottons.