Producer Prices in Cotton Markets: Evaluation of Reported Price Information Accuracy
Ethridge, Don E.
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This study evaluates the accuracy of the US Department of Agriculture- Daily Spot Cotton Quotation; (DSCQ) in reporting producer prices in the Texas-Oklahoma cotton production region;. Analysis of price levels and movements suggests that the DSCQ tend to overstate estimated producer prices for base quality, overstate quality discounts, and understate producer quality premiums in relation to hedonic measurement of prices. The DSCQ also did not move with the hedonic prices on a daily basis, but tended to lag the hedonic prices over longer periods. These lead-lag relationhips did not appear consistent over qualities, regions, or years.