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Cotton

Farmarco provides producers with three Cotton Commodity service options:

Advisory
Farmarco advises cotton growers in the management of their cotton price risk. This advice can include when to sell, how much to sell, what marketing alternatives to use and the overall management of the marketing program. Using at times a combination of cash sales, SWAPS, on-call contracts, futures and options, Farmarco supports the grower in achieving profit objectives and managing price risk a number of years into the future.

Brokerage
Opportunities for improved pricing are often short lived and even a small improvement in the price can make a substantial difference to profitability. Farmarco will find you a market and the best price on the day you wish to sell cotton. Farmarco has established relationships with all the major cotton merchants both onshore and offshore and brokers both grower and merchant cotton for up to five years forward. 

Information
Farmarco provides a weekly market report “Cotton Compass” (in conjunction with Left Field Solutions) which looks at the cash, futures and basis markets up to three years forward and provides an outlook on the markets that will assist you in keeping abreast of where the market is, what is driving the market and why and where we think it is headed.

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Why Farmarco?

Farmarco has been providing marketing and price risk management services to cotton growers since 1990 and continues to be one of the leading advisory firms. Farmarco’s services in cotton range from cash brokerage through to client advisory.

There are any number of reasons that cotton growers use Farmarco. Some of the common ones are:

  • Marketing is not easy and they want help;

  • Marketing effectively is time consuming - there are many other aspects of their business that require attention;

  • Provision of a sounding board and a second opinion on the market and strategies;

  • A preference to let those who concentrate on the market full-time either have influence in their decisions or effectively do their marketing for them;

  • An understanding cotton is a high value commodity and managing price swings is important to longer term profitability.

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