Disclaimer: This web page is designed to aid farmers with their marketing and risk management decisions. The risk of loss in trading futures, options, forward contracts, and hedge-to-arrive can be substantial and no warranty is given or implied by the author or any other party. Each farmer must consider whether such marketing strategies are appropriate for his or her situation. This web page does not represent the views of Kansas State University.

Estimated CRC Harvest Price for early Cotton
for Counties with Sales Closing 1/31

	Daily
	Closing
	Price
	NYBOT
	Oct 03
Date	Cotton	Date

09/02/03	0.5750	09/17/03	0.6463
09/03/03	0.5759	09/18/03	0.6387
09/04/03	0.5792	09/19/03	0.6360
09/05/03	0.5825	09/22/03	0.6355
09/08/03	0.5765	09/23/03	0.6540
09/09/03	0.5818	09/24/03	0.6520
09/10/03	0.6070	09/25/03	0.6480
09/11/03	0.6370	09/26/03	0.6441
09/12/03	0.6447	09/29/03	0.6670
09/15/03	0.6385	09/30/03	0.6675
09/16/03	0.6260


Avg Harvest	Cotton
Price	0.624
Plant Price	$0.57
Price Change	$0.05
% change	9.47%

An Example for a South Texas Cotton Grower

The Harvest Price will be multiplied times the grower�s cotton yield in 2003. A grower with an 800 pound APH x 70% coverage X $0.624 higher harvest price would have had a revenue guarantee of $349.44. If this grower produced 250 pounds, then based on today's price of $0.624 the revenue to count would be $156.00 and the indemnity payment would be the difference between the revenue to count and the revenue guarantee for gross indemnity payment of $193.44 (before premium deduction).