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Thursday, January 11, 2018

Wool price ratio to cotton

By Andrew Woods  |  Source: AWC, WI, AWEX, Cotlook, RBA, IWTO, ICS

Relative pricing is the gravity of commodity markets. If price is cheap enough for long enough, someone will find a use for the commodity and improve demand. The reverse applies also, with high relative prices encouraging the buy side to look at alternatives. The complication is that what constitutes an acceptable relative price is not necessarily a constant. This article takes a brief look at the 21 micron price in relation to cotton.

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Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 

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