Cotton futures approved

The China Securities Regulatory Commission (CSRC) approved the Zhengzhou Commodity Exchange for trading in cotton futures beginning June 1, according to a Shanghai Securities News report citing exchange sources. The report said that the regulatory approval was granted in March. The exchange reportedly set the minimum size of each contract at five tons and the minimum trading deposit at 7% of the total contract value. Trading prices will be allowed to fluctuate by a maximum of 4% up or down daily based upon the previous trading day's closing price. China has futures exchanges in Henan provincial capital Zhengzhou, Dalian in Liaoning province and Shanghai municipality. Cotton will join copper, aluminum, rubber, soybeans, soybean meal and wheat as commodities which can be traded via futures contracts.