Cotton hedging example

The following examples will give you a general understanding of the features and benefits of our cotton hedging products.

For producers

• Swaps example:
  ‘I want the security of a fixed price.’
• Options example:
  ‘I want protection against falling prices, but I’d also like to benefit if prices rise.’
• Collar example:
  ‘I want protection against falling prices but I’d also like to benefit if prices rise, without having to pay a premium.’

For consumers

• Swaps example:
  ‘I want the security of a fixed price.’
• Options example:
  ‘I want protection against rising prices, but I’d also like to benefit if prices fall.’
• Collar example:
  ‘I want protection against rising prices but I’d also like to benefit if prices fall, without having to pay a premium.’

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 59kb).
  View the Product Disclosure Statement (PDS) for Agricultural Commodity Risk Management Solutions issued by the Commonwealth Bank of Australia, and consider it before making any decision about the product(s).