Alternative play on Cotton?

Discussion in 'Ag Futures' started by TheoCap, Sep 27, 2007.

  1. TheoCap

    TheoCap

    I was wondering if anyone knew of any cotton-related stocks that are publicly traded. I've been bullish on the commodity for awhile, but I don't have the fund size to buy a contract and set a sufficently wide stop loss.

    Any help would be appreciated. Thanks guys.
     
  2. ?...............consider trading July-08/October-08 or October-08/December-08 cotton spreads. Those spreads should correlate closely enough to the trend of the market. Another alternative would be to trade the 1000-bushel soybean contract because soybeans are taking away acres from cotton and propelling it higher.......for the time being.
     
  3. TheoCap

    TheoCap

    I agree, thanks very much for the insight! Looks like it came right out out of one of my CFA textbooks.
    The reason I hadn't looked into a spread yet was that I've always been a bit nervous of ag future spreads due to the non-underlying tracking issues that sometimes come up (backwardation, contago, etc..).

    Anyway, thanks again. Have a good one guys.