The futures market also lets you price your crop before delivery. You can hedge your crop before it is planted, while it is growing, or while it is in storage. Because many buyers and sellers are involved in the futures market, prices are usually pushed to their highest levels. Futures Market Advantages You know price range. You have maximum flexibility.
Competition establishes price.
It requires understanding. It requires margin money. It requires decision making. Learning to use the futures market can give you maximum satisfaction from your cotton marketing. If used properly, it can almost always guarantee an acceptable price each year.