'Lock in' price
There are a number of different forward marketing options: AUD fixed cash price, fixed bale pool, hectare contract, guaranteed minimum price, balance of crop and force majeure.
The ability to ‘lock in’ a price for some or the entire crop before harvest can be a major advantage.
Due to the relatively small size of the Australian cotton market, it is often the cotton merchants approaching growers to buy cotton, creating a price competitive market.
Click here for more information on processing, exporting and marketing of cotton in Australia.