The Learn About Futures Insider for September 15, 2011: Cotton (Part 1)

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This soft staple fiber from the bolls of the cotton plant has been cultivated since about 3000 BC in the Indus Valley - part of modern-day India and Pakistan - and as early as 5000 years ago in the Americas. Ancient cultures spun cotton to make fine garments and textiles. Wild, uncultivated cotton has been found in Australia, Africa, Arizona, Central America, California, Brazil, and Mexico - and through breeding and selection, wild cotton plants were developed into the processing-friendly varieties grown today.

Contract Size: 50,000 pounds

Price Quote & Tick Size: Cents and hundredths of a cent per pound; minimum fluctuation is 1/100 of a cent per pound = $5.00 per contract

Contract Months: March, May, July, October, December

Trading Specs: Futures electronically only on the Intercontinental Exchange 21:00-14:30 ET. Options floor trading hours are 10:30 AM to 2:15 PM ET

Daily Price Limit: Futures contracts are subject to a daily price limit that can range from 3 to 7 cents per pound.

Trading Symbols: CT


Past performance is not indicative of future results.
***chart courtesy of Gecko Software

Cotton Facts

Commercially grown cotton is normally one of five varieties; Egyptian, Sea Island, American Pima, Asiatic, or Upland. In the United States, the "cotton belt" growing region includes Alabama, Arizona, Arkansas, California, Georgia, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. A cotton crop needs a long frost-free period, a lot of sunshine, and moderate rainfall - it normally takes around 150 days from planting to harvest. Most dry tropic and sub-tropic areas across the globe can produce cotton.

Part 2:The Learn About Futures Insider for September 15, 2011: Cotton (Part 2)
Part 3 : The Learn About Futures Insider for September 15, 2011: Cotton (Part 3)
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