FC Index Introduction

The FC Index is monitored by China Cotton Association and published by Beijing Cotton Outlook Consulting Limited Company. It is daily shown on the website of www.china-cotton.org and www.cottonchina.org . FC Index has started daily published since August 1, 2005.

The Function of FC Index
The FC Index (Foreign Cotton Index) is the supplement and improvement of the CC Index system. It reflects the foreign cotton complex quotation level at the China ports, and cannot directly represent any cotton's quotation. Its function also contains to reflect the foreign cotton price trend in China, to compare the domestic and foreign cotton price. The FC Index supplies a “weatherglass” for the cotton-imported companies.

The Structure:
The FC Index including three indices of FC Index S 、 FC Index M 、 FC Index L. FC Index S represents for the high-grade cotton price, which equals to the SM; FC Index M for the Middling; and the FC Index L for the SLM.

The Ways of Formation:
The FC Index is the foreign cotton price of prompt shipment, terms of CNF China. It doesn't include the tariff, value added tax, port charges and insurance charges. It is based on the many international cotton merchants' quotations for the China port. Each producing country's cotton monthly weighted rate is calculated according to the respective cotton rate of the China monthly total cotton import volume. It is weighted averagely from the current month's former twelve months import moving average volume. The weighted rate would be published at the 28 date (holidays will be delayed) of each month, and from the first date of next month to use. We also should refer the merchants' quotations on the Far East port and the Cotlook A (FE) Index. Then the FC Index comes out.