Agricultural Production and Prices
Markets for major agricultural commodities are typically analyzed by looking at supply-and-use conditions and implications for prices. From an economic perspective, these factors determine the market equilibrium. In the U.S. agricultural sector, many interactions and relationships exist between and among different commodities. For example, corn production and prices affect feed costs in the livestock sector.
The 10-year phase-out of textile and apparel import quotas that existed under the international Multifiber Arrangement was completed at the start of 2005, leading to increased U.S. imports of those products and contributing to reduced U.S. cotton mill use. As a result, U.S. raw cotton exports have become increasingly important. Exports now account for approximately 85 percent of overall use of U.S. cotton, compared with less than 40 percent in the 1990s. The United States is the leading global exporter of cotton. Vietnam and China are the largest destinations for U.S. cotton exports.