THE FUSE

South African cotton producers now have access to a weekly average reference price designed to provide a clearer indication of cotton fibre market conditions. The South African Cotton Producers’ Organisation (SACP), with support from Cotton SA, has established the platform to give farmers an average reference price for cotton fibre each week. The price is derived from the weekly average December 2024 New York Futures price for SLM 1/16-inch, also referred to as Thin A2 fibre, with the applicable exchange rate taken into account. The initiative can give cotton producers a useful starting point when assessing market conditions and considering discussions around production costs and marketing arrangements. At the same time, farmers need to understand that the published figure is a reference price rather than a guaranteed amount that every producer will receive.