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  • The purpose of the guaranteed minimum price contract

    Chapter 4 - Cotton trading - Guaranteed minimum price contracts 

     
     
    The purpose of the guaranteed minimum price contract is to sell cotton at an established price and maintain the potential for price improvement, with no downside risk. In other words, if the producer sells to the merchant today and the price then starts to rise considerably, the producer can participate in the market rise. 
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    Cotton Exporter's Guide

    Brochure - African cotton promotion
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