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Description
Cotton (Financial) futures are an outright cotton contract between a buyer and seller that industry participants, such as cotton producers, exporters, importers and retailers can use to manage price risk.
- Provide effective risk management opportunities for participants in a number of markets that use cotton, including textiles, paper, livestock feed and coffee filters
- Are financially-settled contracts that provide price discovery and remove the complexities of the physically-delivered process
Things to know about the contracts
- Traded electronically on the CME Globex platform, virtually around the clock
- Off-exchange transactions can be submitted for clearing only through CME ClearPort, as EFSs
- Trading months consist of a March, May, July and October cycle over a 24-month-period
- Are a dollar-denominated, financially-settled contract of 50,000 pounds
About Cotton
Cotton, derived from the cotton plant, is the world’s most widely-used natural fiber for clothing. Archaeological findings have discovered that people from India and South America grew cotton as far back as 7,000 years ago. It was a pivotal factor in wars including the United States Civil War in the 1860s. Today, cotton is used in a number of industries, including textiles, coffee filters, paper printing, and livestock feed.
| NYMEX Cotton Futures | |||||
|---|---|---|---|---|---|
| Product Symbol | TT | ||||
| Venue | CME Globex, CME ClearPort | ||||
| Hours (All Times are New York Time/ET) |
CME Globex: | Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT) | |||
| CME ClearPort: | Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT) | ||||
| Contract Size | 50,000 pounds | ||||
| Price Quotation | U.S. Dollars per pound | ||||
| Minimum Fluctuation | $0.0001 per pound | ||||
| Termination of Trading | Trading terminates on the day immediately preceding the first notice day of the corresponding trading month of Cotton futures at ICE Futures U.S. | ||||
| Listed Contracts | Trading is conducted in the March, May, July, October, and December cycle for the next 24 months. | ||||
| Settlement Type | Financial | ||||
| Position Limits | NYMEX Position Limits | ||||
| Rulebook Chapter | 932 | ||||
| Exchange Rule | These contracts are listed with, and subject to, the rules and regulations of NYMEX. | ||||
