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The 7 Critical Factors That Determine Cotton's Value

Cotton boll on branch against green background

Cotton prices are determined not only by supply and demand but also by the intrinsic quality profile of each bale. In international trade, every bale is graded on parameters such as staple length, strength, micronaire, color, foreign matter, moisture, and uniformity. These measures form the common language used in exchanges and spinning mills to define value [1][2]. Below are the seven key quality factors recognized across the global cotton industry, along with additional considerations often discussed in the market.

1) Staple Length

  • Definition: Average fiber length, reported as UHM (upper-half mean) or equivalent measure.

  • Unit: Inches (″) or mm.

  • Market ranges / thresholds: Upland cotton typically 1.00″–1.25″ (25.4–31.75 mm); commercial “premium” range around 1 1/8″–1 5/32″ (~28.6–29.4 mm); Extra-Long Staple (ELS, Pima) ≥ 1 3/8″ (~34.9 mm) [1][12].

  • Contract notation: “Staple 29 mm” or “1 1/8″”; ≥32 mm usually refers to ELS segment [1].

  • Note: Staple length directly enters premium/discount tables [1].


2) Fiber Strength (Tenacity)

  • Definition: Breaking strength of the fiber, resistance to rupture during spinning.

  • Unit: g/tex.

  • Market ranges / thresholds: ~28–30 g/tex = medium to strong; ≈30 g/tex and above = strong/premium [1][3].

  • Contract notation: “Strength ≥ 30 g/tex” appears in offers/specs; loan schedules also apply strength points [1][3].


3) Micronaire

  • Definition: Composite index of fineness and maturity.

  • Unit: Micronaire units.

  • Market ranges / thresholds: USDA loan tables classify ≈3.7–4.9 as preferred; <3.5 and ≥5.0 incur penalties [5][6][7].

  • Contract notation: “MIC 3.8” or “MIC 4.2” are common; micronaire band determines premium/discount [5].


4) Color — Rd (Reflectance) and +b (Yellowness)

  • Definition: Rd = brightness/reflectance; +b = yellowness. Combined into USDA color–leaf grades.

  • Unit: Rd (%) and +b units → Color Grade code (e.g., 21, 31) plus leaf code (e.g., -1, -2) [1][2].

  • Market ranges / thresholds: Higher Rd (≥77) indicates brighter; Color Grade codes 21, 31, etc., used in trade [1].

  • Contract notation: “31-1” or “21-1”; first number = color band, suffix = leaf grade [1][2].


5) Foreign Matter and Contamination (Trash / Extraneous)

  • Definition: Trash = leaf, bark, dust; Extraneous = plastic, metal, jute, rope, synthetics.

  • Unit: Trash %; extraneous contamination codes.

  • Market ranges / thresholds: Trash ≤3% seen as clean; plastic contamination penalized heavily (e.g., –4000 points in loan schedule) [6][7].

  • Contract notation: “Extraneous: plastic” = discount or rejection; round module wrap cutting is a key risk [6][7][11].


6) Moisture

  • Definition: Water content of the bale.

  • Unit: % (wet basis).

  • Market ranges / thresholds: U.S. regulation defines ≥7.5% WB as a “wet bale” [3][4]. Buyers typically demand <7.5–8% WB for safe storage.

  • Contract notation: “Wet bale” label = loan ineligible and discounted [3][4].


7) Uniformity Index and Short Fiber Index (SFI)

  • Definition: Uniformity = degree of homogeneity in fiber length; SFI = proportion of fibers <0.5″ (12.7 mm).

  • Unit: Uniformity (%) and SFI (%).

  • Market ranges / thresholds: Uniformity ~80–85 = average/high; SFI <8–10% generally required [8].

  • Contract notation: “Uniformity 83,” “SFI 6.5%” appear in offers/specs [8].


References

[1] USDA AMS – Cotton Classification: Understanding the Data
[2] Cotton Incorporated – Classification of Upland Cotton
[3] ECFR, 7 CFR §1427 – Definition of “Wet Cotton” (≥7.5% WB)
[4] USDA ARS – CAT-scanning Cotton Bales for Moisture
[5] CCC Loan Premium & Discount (Upland) – Micronaire tables
[6] FSA – Upland Loan Schedule (2025)
[7] Cotton Incorporated – Proper Cutting of Plastic Wrap on Round Modules
[8] USTER® HVI – Uniformity & Short Fiber Index ranges
[9] USDA ARS – Sticky Cotton: Causes, Effects, and Prevention
[10] UGA Extension – Sampling & Managing Whiteflies (2023)
[11] Journal of Cotton Science – Effects of Gin Machinery on Cotton Quality
[12] USITC – Industry and Trade Summary: Cotton

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