New Hedging Strategy: Should the industry go back to our physical cotton hedging roots?

摘要

If you diligently read Cotton International, you may recall my article from 2007, also titled "New Hedging Strategy." This can be considered "Part Two," as you may be curious to learn what view I would have after the March 2008 cotton market disaster.Does it still really make sense for European traders to go back to the hedging of physical cotton in order to better limit and control financial exposure? So that we may better understand the more complex correlation between the Cotlook index and IntercontinentalExchange (ICE) quotes, let us look back at the past nine months.