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Australian Financial Services (AFS) Licence 246566

Trading Cotton (CTN)

Cotton

Cotton is a fibrous material that has been cultivated in India for 6000 years. It is produced from the cotton plant which is ideally suited to warm, semi-tropical climates.

The three top countries for producing cotton are China, India and the U.S. China is the major producer, producing 8.5 million tonnes per year. China is also the major consumer with India coming second. The U.S. is the second largest producer with 6 million tonnes followed closely by India.

Factors that can influence the price of cotton are:

  •  Cotton subsidies provided to U.S, farmers. Currently subsidies can be as high as five times more than the subsidies offered to grain producers.
  • Because of these subsidies, U.S. cotton can be sold internationally below production costs.
  • China is now the largest net importer of cotton. Continued demand will influence price.
  • Weather patterns and global warming can influence price. Cotton requires intensive use of water and therefore there has been continuous debate over water rationing and drought management.

CTN

 

Cotton (CTN) Contract Details:

Currency Price per Standard Contract Size Pip Value / contract
USD cents Pound 50,000 Pounds 5 USD cents

Trading hours: Cotton trades daily Monday to Friday from 02:00 GMT and closes at 19:15 GMT. Spreads are usually higher during out-of-business hours.

For more information on Cotton and other related trading products, go to our blog website, forex.info.

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