Managing price risk can be a daunting task for cotton producers. But it’s becoming more and more of a necessity in markets where volatility is the norm, and outside forces can affect prices more than fundamentals.
With that in mind, Cotton Incorporated is hosting a seminar in Memphis, Tenn., on Feb. 17, at the Peabody Hotel, 149 Union Ave., from 8:30 a.m. — 5:00 p.m.
The event is part of a series of one-day seminars designed to help cotton producers increase their understanding of options on cotton futures contracts and what they can do to help increase their returns from cotton.
Sessions will cover the basics of cotton futures and options, specific hedging strategies involving the use of cotton options contracts, producer perspective, and a market outlook. There will also be discussions on integrating crop and revenue insurance.
Other seminars are scheduled in Coalinga, Calif., in March (date to be determined) and in Lubbock, Texas, on April 7, at the Holiday Inn Hotel and Towers, 801 Avenue Q.
“The seminars will cover the basics, as well as some of the more intermediate information related to cotton futures and options, specific hedging strategies involving the use of cotton options contracts and real world applications,” says Cotton Incorporated’s director of agricultural research and ag division staff economist, Jeanne Reeves.
“Knowledge of these market-based strategies is critical for increasing the bottom-line of producers, and we encourage them to attend this seminar at no cost.”
Speakers at the seminars will include Carl Anderson and John Robinson from Texas A&M University. They will discuss when and how to use a variety of option strategies including: fences, 3-ways and calendar back spreads. O.A. Cleveland, a cotton marketing specialist, Mike Stevens, Swiss Financial Services and Jarral Neeper, president of Calcot, will provide market outlooks. Speakers may vary depending on location.
Registration for each seminar is free, and includes all presentation materials as well as lunch during the seminar.
To learn more about these events and to register, contact: Kay Wriedt, Cotton Incorporated at (919) 678-2271 or [email protected].
The seminar series is sponsored by Cotton Incorporated with local sponsorship. The Memphis event is co-sponsored by Delta Farm Press.