Trading the Cotton Contract

Sugar, coffee, cocoa, cotton, orange juice, and lumber — the weather-driven markets.

Soft commodities are among the most weather-sensitive and politically exposed markets in the world. Forward-contract hedges protect food manufacturers, roasters, and builders against supply shocks and price spikes.

Whether you hedge commercial exposure or study the market, you do not have to figure it out alone. AgriculturalHedging.com's education library explains the contract and its risks, and its partner network connects you with qualified, registered organizations that serve cotton markets.

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Contract Specifications

ExchangeICEUS
Contract Size50,000 lbs.
Contract MonthsH, K, N, V, Z (March, May, July, October, December)
Trading Hours21:00-14:30 ET
Minimum Fluctuation.01¢/lb. = $5.00
Daily Limit3"“7¢/lb. = $1,500"“3,500

Contract specifications change. Always confirm current specs with the exchange before trading.

Cotton Futures FAQ

What is the Cotton futures contract?

Cotton No. 2 is the fiber benchmark from the Texas plains to the Delta — a market where mill demand, polyester prices, and monsoon timing in Asia all intersect. The contract trades on ICEUS with a contract size of 50,000 lbs..

How can I hedge Cotton price risk?

Soft commodities are among the most weather-sensitive and politically exposed markets in the world. Forward-contract hedges protect food manufacturers, roasters, and builders against supply shocks and price spikes. Qualified hedging providers can be found through the AgriculturalHedging.com partner network.

How do I start trading Cotton futures?

Futures accounts are opened with registered firms — futures commission merchants and introducing brokers. AgriculturalHedging.com explains the contract, the margin, and the risks so you can evaluate providers and get started prepared.

Learn or Hedge Cotton with Qualified Help

AgriculturalHedging.com turns commodity complexity into plain language — and connects you with registered organizations that serve cotton markets.

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