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Cotton #2 Contract History

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Contract History

ICE Futures U.S. Cotton No. 2 contract utilizes complex grading standards to guarantee the quality of the cotton in the contract, and ensure its ability to accurately reflect market conditions. Adjustments are made to the contract as needed; relative to cash market moves, crop characteristics and industry practices.

Cotton futures have been trading since 1870 at New York's original futures exchange. The ICE Futures U.S. cotton options market, opening in 1984, represents one of the most active agricultural options markets in the world. This universal fiber dates back to over five thousand years ago and served as one of the first "currencies" of world trade.

Raw cotton fiber is produced and consumed globally, and has certain qualitative characteristics and quantitative elements. These attributes allow cotton to be standardized for trade in futures markets. The continuity of the cotton futures market relies heavily on a contract's ability to reflect cash market conditions and practices.

Cotton's world-wide appeal and vulnerability to unforeseen natural and man-made events raises the economic stakes for this commodity, attracting hedgers, speculators and risk managers to what is one of the most actively traded and highly liquid markets in the world.

Click here for a list of cotton producing countries.

Cotton Futures & Options Brochure

Click on the link above to download a very informative .pdf brochure entitled "Cotton Futures & Options". It was published by the New York Board of Trade. This is a must read guide for any novice or advanced trader considering an investment in the cotton commodity futures and options markets.

Click here to contact a licensed commodities broker with experience in the cotton market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclosure.

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