Cotton Futures and Options

Having the ability to take advantage of futures market contracts and options contracts as a means of shifting price risk is a valuable tool for producers. While trading futures market contracts and options contracts may be a relatively easy task to undertake, understanding the fundamental concept behind how these contracts are used from a price risk management standpoint is essential before trading begins. The booklets “Introduction to Cotton Futures” and “Introduction to Cotton Options” can assist producers in learning the basics.