(a) CCC will determine the world market price for ELS cotton as follows:

(1) During the period when only one daily price quotation is available for each growth quoted for long staple cotton, CFR (cost and freight) Far East, the prevailing world market price for ELS cotton will be based on the average of the quotations for the preceding Friday through Thursday for the 3 lowest-priced growths of the growths quoted for long staple cotton, CFR Far East.

(2) During the period when both a price quotation for cotton for shipment no later than August or September of the current calendar year (current Far East shipment price) and a price quotation for cotton for shipment no earlier than October or November of the current calendar year (forward Far East shipment price) are available for growths quoted for long staple cotton, CFR Far East, the prevailing world market price for ELS cotton will be based on the average of the current Far East shipment prices for the preceding Friday through Thursday for the 3 lowest-priced growths of the growths quoted for long staple cotton, CFR Far East, except as specified in paragraph (c)(2)(iv) of this section.

(3) Quotes specified in paragraphs (a)(1) and (2) of this section may be adjusted to account for quality differences between the respective foreign growth and U.S. Pima, of the base quality.

(4) The ELS cotton prevailing world market price determined as specified in paragraph (a)(1) or (2) of this section is referred to as the “Extra-Long Staple Far East price” (ELSFE).

(5) If quotes are not available for 1 or more days in the 5-day period, the available quotes during the period will be used. If no quotes are available during the Friday through Thursday period, the prevailing world market price will be based on the best available world price information, as CCC determines.

(b) The ELS cotton prevailing world market price, adjusted as specified in paragraph (c) of this section (adjusted world price (AWP)), will apply to crops of ELS cotton.

(c) The ELS cotton AWP will equal the ELSFE determined as specified in paragraph (a) of this section, adjusted as follows:

(1) ELSFE will be adjusted to U.S. location by deducting the average costs to market, including average transportation costs, as determined by CCC.

(2) The prevailing world market price, adjusted as specified in paragraph (c)(1) of this section, may be further adjusted if it is determined that the adjustment is necessary to:

(i) Minimize potential loan forfeitures;

(ii) Minimize the accumulation of stocks of ELS cotton by the Federal Government;

(iii) Ensure that ELS cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and

(iv) Ensure an appropriate transition between current-crop and forward-crop price quotations, except that forward-crop price quotations may be used prior to July 31 of a marketing year only if there are insufficient current crop quotations and the forward-crop price quotation is the lowest such quotation available.

(d) The ELS cotton AWP, determined as specified in paragraph (c) of this section, and the amount of the additional adjustment determined as specified in paragraphs (e) and (f) of this section, will be announced, to the extent practicable, at 4 p.m. eastern time each Thursday. In the event that Thursday is a non-workday, the determination will be announced, to the extent practicable, at 8 a.m. eastern time the next work day.