PCCA 50th comments
The marketing staff of Plains Cotton Cooperative Association (PCCA) reviews the Cotlook A-Index price level, changes and composition on a daily basis as part of our price discovery process in order to answer the following questions:
- Which growths are quoted, and which growths have gone nominal?
- Which of the quoted growths are available for prompt shipment or delayed?
- Where are our prices relative to the growths represented in the A-Index quotes?
- Does the A-Index, along with other signals, help provide any clues to predict pricing/basis level trends?
The Cotlook A-Index has been the benchmark used for loan repayment calculations under the Marketing Assistance Loan program since the beginning of the 1985 Farm Bill. Since then, PCCA has used the A-Index quotes as a market signal to know when to redeem cotton from the loan program in order to maximize benefits to our members.