How much does a cotton futures contract cost?

A speculator enters into two short cotton futures contracts, when the futures price is $1.20 per pound. The contract entails the delivery of 50,000 pounds of cotton. The initial margin is $7,000 per contract and the maintenance margin is $5,250 per contract. The settlement price on the day of the transaction is $1.50 per pound.

What's going on with cotton futures?

Cotton futures posted limit gains out through July ’23 on Friday. A dramatic cut to the US production number by NASS helped to push things higher. They will have expanded limits of 5 cents on Monday. USDA’s Crop Production report showed an increase to US abandonment, with harvested acres at 7.13 million, down 1.42 million from last month.

How strong was the cotton market on Wednesday?

The cotton market is up 84 to 119 points to start the Thursday session. Most contracts showed gains on Wednesday, with futures up 8 to 78 points. The outside market factors were helpful, with crude oil... The cotton market posted strength across most contracts on Wednesday, with futures up 8 to 78 points across most contracts.