The projected 87-million bale crop is expected to fall more than 5 million bales short of global mill use. That is the largest deficit gap in production versus use since the 1993 season. Successful producers are preparing and implementing a price risk program. Put options provide price insurance and allow benefits from higher prices. Call options can be used after harvest instead of storing cotton if you expect higher prices next spring.
Contracts provide a price floor and, when used alone, a price ceiling as well.
Many producers are using the marketing associations and gin pools to market their cotton. Group marketing has the advantage of attracting several buyers, hiring full time marketing expertise to manage price risk, and the volume to market over a longer time period than is practical as an individual. Nationally recognized cotton leaders will discuss the production and alternatives for marketing a higher quality cotton for a higher price. 522.00 519.00 525.00 500.00 480.00 505.00 502.00 500.00 673.00 625.00 607.00 622.00 644.60 Beginning Stks. You have to take pricing opportunities from the market.