ICE Cotton No. 2

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The ICE U.S. Cotton No. 2 contract is the benchmark contract for the global cotton trading community. The contract prices physical delivery of US-grown, exchange-grade product with grading performed by the U.S. Department of Agriculture, in store in exchange licensed warehouses in any of five US locations.

ICE Cotton No. 2 futures and options trade both by open outcry and by electronic trading on the ICE platform.

Uses

Uses for cotton include textiles, home furnishings, and other industrial uses such as medical supplies.

U.S. textile mills presently consume approximately 7.6 million bales of cotton a year. Eventually, about 57% of it is converted into apparel, more than a third into home furnishings and the remainder into industrial products.[1]

Data Quotes

ICE offers data quotes on a subscription basis.[2]

Contract Specifications

Cotton No. 2 Futures
Trading Screen Product Name Cotton No. 2 Futures
Trading Screen Hub Name NYCC
Contract Symbol CT
Contract Size 50,000 pounds net weight
Quotation Cents and hundredths of a cent per pound
Contract Series March, May, July, October, December
Minimum Price Fluctuation 1/100 of a cent (one "point") per pound equivalent to $5.00 per contract.
Settlement Physical Delivery
Daily Price Limit Futures contracts are subject to a daily price limit that can range from 3 to 7 cents per pound. Please consult Rule 10.09 for details[3]
Deliverable Origins Mexico, Salvador, Guatemala, Costa Rica, Nicaragua, Kenya, Papua New Guinea, Panama, Tanzania, Uganda, Honduras, and Peru all at par, Colombia at 400 point premium, Burundi, Rwanda, Venezuela and India at 100 point discount, Dominican Republic and Ecuador at 400 point discount, and Brazil at 600 point discount.
Delivery Locations Exchange licensed warehouse in the Ports of New York District, Virginia, New Orleans, Houston, Miami, Bremen/Hamburg, Antwerp and Barcelona.

The New York and Virginia delivery points are par; the New Orleans, Miami and Houston delivery points are at a discount of 0.50 cents per pound; and the Bremen/Hamburg, Antwerp and Barcelona delivery points are at a discount of 1.25 cents per pound.

Grade/Standards/Quality Quality : Strict Low Middling Staple Length: 1 2/32nd inc
First Notice Day Five business days before the first delivery day of the spot contract month, which is the first business day of that month.
Last Trading Day Seventeen business days from end of spot month.
Last Notice Day Twelve business days from end of spot month.
Position Limit Position Limit and Position Accountability information for all IFUS products can be found here.[4]
Markers TAS (Trade at Settlement)[5]
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:15 AM - 1:30 PM

04:15 - 13:30

8:00 PM

20:00

LONDON 9:15 AM - 6:30 PM

09:15 - 18:30

1:00 AM

01:00

SINGAPORE 5:15 PM - 2:30 AM

17:15 - 02:30

9:00 AM

09:00

**In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:00 pm to 6:00 pm NY time on the prior Exchange business day.
Codes Clearing Admin Name Coffee C
Physical KC
Logical KC
GMI (FC) 43
ION A.C.N. 2065
Cotton No. 2 Options
Trading Screen Product Name Cotton No. 2 Futures
Trading Screen Hub Name NYCC
Contract Symbol CT
Contract Size 50,000 pounds net weight
Price Quotation Cents and hundredths of a cent per pound
Contract Series Regular Options: March, May, July, October and December; Serial Options: January, September and November. The underlying future for the September and November serial options is the December futures contract; the underlying future for the January serial option is the March futures contract
Minimum Price Fluctuation 1/100 of a cent (one 'point') per pound
Daily Price Limit Cotton Options trading may be halted under certain market conditions. See Rule 10.53 for details.
Strike Price Intervals 1-cent increments for all contract months.
First Trading Day Business day following the listing of the underlying future.
Last Trading Day For Regular Options: Last Friday preceding the first notice day for the underlying futures by at least 5 business days

For Serial Options: Third Friday of the month in which the option expires.

Position Limit Position Limit and Position Accountability information for all IFUS products can be found here.[6]
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 9:00 PM - 2:20 PM*

21:00 - 14:20

7:30 PM

19:30

LONDON 2:00 AM - 7:20 PM*

02:00 - 19:20

12:30 AM

00:30

SINGAPORE 10:00 AM - 3:20 AM*

10:00 - 03:20

8:30 AM

08:30

*Next Day
Codes Clearing Admin Name Cotton No 2
Physical CT
Logical CT
GMI (FC) 28
ION A.C.N. 2205

References

  1. Cotton's Major Uses. Cotton.org.
  2. The most valuable commodity is information. ICE.
  3. Cotton Rulebook. {{{org}}}.
  4. Position Limit and Position Accountability Information. {{{org}}}.
  5. TAS. {{{org}}}.
  6. Position Limit and Position Accountability Information. {{{org}}}.

Resources

ICE Cotton No. 2 Product Spec