ZCE Cotton

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ZCE cotton futures trade on the Zhengzhou Commodity Exchange (ZCE). They were launched on June 1, 2004[1].

Today, China is the world’s top cotton producer[2] as well as consumer[3].

Each ZCE cotton futures contract represents 5 tons of deliverable Grade 328B saw ginned upland cotton, which is defined in accordance with National Standard GB1103-1999, while substitutions at differentials that meet ZCE delivery rules are also good for delivery, and its delivery date is set as the twelfth trading day of the contract month[4].

Effective April 30, 2008 (the official website has not been updated yet), each ZCE cotton futures contract is subject to a margin rate equivalent to 6 percent of contract value, up from the previous 5 percent (e.g., 4273.5 yuan = 14245 yuan [CF807 last price on May 22, 2008] x 5 [tons/contract] x 6 percent) as well as a trading fee of 8 yuan (RMB) / contract.

In the first four months of 2008, trading volume of ZCE cotton futures contract set two new highs, with 355,556 contracts traded most recently on March 5, 2008[5]. In the whole of 2008, ZCE cotton futures traded 10,775,342 contracts (+83.05 percent YOY) and its turnover amounted to 708.4 billion yuan (+63.26 percent YOY).

ZCE Monthly Volume by Product.JPG

ZCE Cotton No.1 futures
Exchange Zhengzhou Commodity Exchange
Settlement Physically delivered
Contract Size 5 tons / lot
Pricing Unit 5 yuan (RMB)
Tick Value 5 yuan (RMB)
Contract Months Jan, Mar, May, Jul, Sep, and Nov
Last Trading Day The tenth business day of the delivery month
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A 9:00-11:30 a.m. 1:30-3:00 p.m.
Ticker Symbol N/A CF
Price Limits N/A 4% above or below the previous trading day's settlement price


  1. History of ZCE. Zhengzhou Commodity Exchange.
  2. Cotton Market Weekly January 11, 2008. Plains Cotton Cooperative Association.
  3. U.S. is expected to lose WTO fight on cotton subsidies. International Herald Tribune.
  4. Cotton No.1 Futures Contract Specs. Zhengzhou Commodity Exchange.
  5. The Trading Volume of Cotton Contracts on ZCE Hit a New High. Zhengzhou Commodity Exchange.