
Cotton Futures
Cotton has been in the global marketplace
for at least 3,500 years. Archeological research has uncovered cotton
fibers on different sides of the globe in India and Peru. The Persians,
the Romans, and the British were among the great empires that valued,
traded, and spread this universal commodity. The Industrial Revolution
further magnified cotton's economic status. The spinning jenny,
spinning machine, and steam engine transformed cotton, and cotton, in
turn, changed world trade. When the machine age reached the farm with
the invention of a machine to separate cotton fiber from the seed --
the cotton gin -- the economic power of cotton underwent another period
of enormous expansion. And in the midst of the mechanization and
movement of production, the boll weevil served as a reminder of the
vulnerability of any crop commodity to natural disaster.
The cotton industry has experienced enormous
farming, manufacturing, and marketing changes in its 3,500- year
history. While many crop commodities (such as coffee) are more land and
climate specific, cotton can grow nearly anywhere that has the
requisite 200 frost-free days and the basic water supply. The cash
market is ever shifting as conditions favor different growths in
different countries and technology continues to improve the
manufacture, marketing, and even genetic structure of cotton.
Government involvement in pricing and production as well as
international and regional trade agreements also contribute to market
changes.
Commodity
Cotton
Trading Hours
7:30-11:15
Contract Size
50,000 Lbs
Units Quoted
CTS/LB
Point Value
1Pt= $5
Minimum Fluctuation
1Pt= $5
Daily Trade Limit
2CTS = $1,000
Tick Symbol
CT
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