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Commodities: Cotton

  1. Introduction to Commodities
  2. Commodities: Cocoa
  3. Commodities: Coffee
  4. Commodities: Copper
  5. Commodities: Corn
  6. Commodities: Cotton
  7. Commodities: Crude Oil
  8. Commodities: Feeder Cattle
  9. Commodities: Gold
  10. Commodities: Heating Oil
  11. Commodities: Live Cattle
  12. Commodities: Lumber
  13. Commodities: Natural Gas
  14. Commodities: Oats
  15. Commodities: Orange Juice
  16. Commodities: Platinum
  17. Commodities: Rough Rice
  18. Commodities: Silver
  19. Commodities: Soybeans and Soybean Oil
  20. Commodities: Sugar
  21. Commodities: Wheat
  22. Understanding Commodities Trading

Cotton has been an important crop for numerous civilizations throughout history, and is believed to have been in use since prehistoric times. A perennial shrub, cotton’s fluffy fiber is spun and woven into yarn or textiles to be used in clothing and other household goods – everything from socks to bed sheets and towels. Both lightweight and absorbent, cotton is used more than any other fiber in the world.

Contract Specifications

Ticker Symbol

TT (CME Globex)

CT (ICE)

Contract Size

50,000 pounds

Contract Months

H, K, N, U, Z

Trading Hours

CME Globex: Sunday – Friday, 6:00 p.m. – 5:00 p.m. (there’s an hour break from 5:00 to 6:00 p.m. each day)

ICE: Monday – Friday, 9:00 p.m. – 2:20 p.m.

Last Trading Day

17 business days from end of spot month

Price Quote

U.S. dollars and cents per pound

Tick Size

$0.0001 per pound ($5 per contract)

Production        

Successful growth depends on sunshine, moderate rainfall and heavy soils – conditions that are found in the dry tropics and subtropics in the Northern and Southern Hemispheres. China, India the U.S. are the top three producers of cotton. The top producing states in the U.S. are Florida, Mississippi, California, Texas and Arizona. Planting typically begins in February, and crops are harvested in the fall.

Price Drivers

  • cotton subsidies (cotton is one of the most subsidized crops in the U.S.; any change could lead to drastic price swings)
  • extremely wet or dry weather or natural disasters
  • competing synthetic fibers
  • demand from emerging markets

 

 


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