The Forecast Of World Agricultural Supply And Demand In June 10Th By The US Department Of Agriculture Will Include Cotton Price Forecasting.

For years, US law prohibits the US Department of agriculture from issuing cotton price forecasts.

One of the logic is that economists at the US Department of agriculture believe that price forecasts may have a price distorting effect on the market.

But over the years, the US Department of agriculture has been issuing price forecasts for other commodities.

One of the most useful reports of the US Department of agriculture is the monthly evaluation report on world agricultural supply and demand.

The WASDE and the economists and statisticians of the US Department of agriculture should estimate the inventory, output, import, total supply, consumption, export, total consumption and final inventory of major commodities at the beginning of the year.

The World Agricultural Outlook committee also estimated the data of the United States as the world.

Historically, every WASDE report contains the US Department of agriculture's best price forecast for the next year, except cotton.

In 2008, the 1610th section of the food, protection and Energy Act (2008 agricultural law) abolished the long-term ban on the US Department of agriculture's prediction of cotton prices.

Therefore, the June 10th WASDE report will predict the average annual price of Upland Cotton in the 2007/08 and 2008/09 markets received by US cotton growers.

The price forecast for 2008/09 will be presented to readers in a range.

This change means that from now on, cotton growers can get the best thinking of the US Department of agriculture on the trend of cotton prices.

These price forecasts provide more information for growers, who can refer to the decision whether to sell cotton.

Cotton prices lag behind the price increase of most other row crops. This change will provide cotton growers with the latest prediction from the US Department of agriculture.

Suppose uncle Sam's budget balance is very bad.

At the same time, assuming that the budget constraints will cause the US Department of agriculture to compiles a report every month.

Well, this report must be WASDE.

Why?

The production of WASDE requires a lot of data. These data are provided by the National Bureau of agricultural statistics of the United States Department of agriculture and the agricultural marketing office of the United States Department of agriculture. They are published in many other reports, as well as data from the Department of Economic Research of the United States Department of agriculture.

The information provided by WASDE for growers comes from dozens of information channels, but they are all aggregated in a report and provided to readers in a simple and understandable way.