Excerpt: During the past few years price analysts in the Bureau of Agricultural Economics have been engaged in studying the behaviour of prices of the major agricultural products. These studies are a part of the Bureau's endeavor to throw light on the economic problems of American agriculture, to supply farmers with adequate bases for planning their year's output with due regard to consumers' requirements and for planning their seasonal marketings with due regard to market conditions. The application of sound economic principles to these price problems, together with a proper statistical analysis of available facts, has unraveled some of the seeming mysteries of the behaviour of agricultural prices and has revealed certain relationships between supply, price and demand which are of practical import to farmers. The purpose of this paper is to present only a few of the results of these studies in relation to cotton, particularly to the interrelationships between supply, price, and consumption of cotton.