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What determines the value of my cotton?
- There are a few steps that go into placing a value on your cotton. As your cotton nears the end of the ginning process, it is tightly packed into a bale. A sample is taken from that bale and is sent to the USDA classing office. The classing office will grade that bale based on several different factors. For more details, refer to the USDA/Cotton Inc. Classification of Cotton.
- Using a combination of the grades you receive for your bale and the CCC loan chart, you can determine the premiums or discounts your cotton receives at loan value. Here is a current loan chart. Base loan is currently $.4949/lb, but is projected to increase to $.5200/lb in 2018.
- Once the premiums or discounts are determined, the cotton can be marketed at a price that is relative to the current trading price