Sterling Terrell

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Keying Dollar Cotton

Keying Dollar Cotton

Cotton is over $1 per pound right now and so producers have got to hedge – but keying dollar cotton is another issue…

See, for a cotton trader, you key cotton prices all day.

There is a rhythm to it and familiarity that grows over time.

A warm coffee, the glow of a computer screen, and a ten-key as you enter orders.

Order to open and hedge, order to close and lift said hedge.

But here is the thing.

The vast majority of the time, cotton prices are 4 digits.

  • 76 cent cotton: 7600
  • 85 cent cotton: 8500
  • 93 and a half-cent cotton: 9350

Do you see it?

When cotton gets over a dollar, it becomes a five-digit number.

  • $1.00 cotton: 10000
  • $1.0700 cotton: 10700
  • $1.1145 cotton: 11145

Suddenly it feels like I am off by a decimal everywhere I look. Everything looks wrong.

These are just the facts.

But no matter.

I absolutely love this job.

Cotton Growers:

DM me if you need to fix your prices!

I will. Set. You. Up.

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Filed Under: Not BooksTagged With: #Cotton, #Trading

Norton Gin

Norton Gin

So I got to tour Norton Gin last week.

It’s a small old cotton gin that has been closed down for a year or so now (located in Norton, TX – between Ballinger, Bronte, and Winters).

The gin’s claim to fame is that they were one of the last “belt-run” cotton gins in the nation.

A large shaft runs along the length of the ceiling with different size belts coming off it that run different machines.

So cool!

  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin
  • Norton Gin

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Filed Under: Not BooksTagged With: #Agriculture, #Cotton

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