The 2008 Cotton Price Spike and Extraordinary Hedging Costs.

Carter, Colin A., and Joseph P. Janzen

from ARE Update Vol. 13, No. 2, Nov/Dec, 2009

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Abstract

Dramatic futures price movements in 2008 caused the demise of a number of U.S. cotton merchants. We outline
the events that led these firms to exit and explain how the 2008 price spike resulted in unusual costs of using futures markets for hedging.

Keywords

cotton market, cotton futures, hedging

Citation

Carter, Colin A., and Joseph P. Janzen. "The 2008 Cotton Price Spike and Extraordinary Hedging Costs." ARE Update 13(2)(2009):9-11. University of California Giannini Foundation of Agricultural Economics.
http://giannini.ucop.edu/publications/are-update/issues/2009/13/2/the-2008-cotton-price-spi/