|A B C D E F G H I
J K L M N O P Q R S T U
V W X Y Z #
Select the first letter of the word from the list above to jump
to appropriate section of the glossary. If the term you are
looking for starts with a digit or symbol, choose the '#' link.
- A -
- acrylic fibre
- Generic name for a synthetic fibre consisting of at least
85% of acrylonitrile units.
- African Franc Zone
- The name given to the francophone cotton producing states
of western and central Africa. They include, in order of
prominence with regard to raw cotton production, Mali, Benin,
Cote d'Ivoire, Cameroon, Burkina Faso and Chad. All have
a common currency, the CFA franc, which is linked to the
- One of the top ten producers of raw cotton in the world,
and currently the largest of the South American producing
countries. The major cotton growing provinces are the Chaco
and Santiago del Estero.
- Amongst the top ten of the world's cotton producers, the
major cotton growing areas include the Macquarie, Namoi
and Gwydir valleys in New South Wales, and Emerald and the
Darling Downs in Queensland. National bale weight is given
as 227 kilos.
- A former Soviet state, now with a privatised ginning industry.
- B -
- A basic tradeable unit of lint (ginned cotton). Bale weights
vary from country to country. (See under the relevant country
for specific bale weights were applicable.) By convention,
a 'statistical' bale weighs 480 lbs.
- base grade
- A selected grade of cotton used by cotton merchants as
a basis for contracts, premiums and discounts. (See also
- The difference between simultaneous prices for cotton futures
and spot cotton. It may be quoted by reference to any futures
month. For example the "March basis" would mean the
difference between the current price of March futures and the
simultaneous quoted value of any given grade and staple
of spot cotton. The growth is usually quoted in terms of
points on or off the applicable month trading at the New
York Cotton Exchange according to the calculated difference.
(See also New
York Cotton Exchange)
- One who anticipates a decline in prices. Opposite of "bull".
- bleached cotton linters
- Linters that have been bleached ready for further processing.
- The fruiting structure of a cotton plant. It is made up
of separate compartments called locks, in which cotton seeds
and lint grow.
- The second largest of the South American cotton producing
countries. With annual raw cotton consumption currently
estimated at 700,000/800,000 tonnes, Brazil vies with China
and Indonesia for the title of the world's biggest importer
or raw cotton.
- break spinning
- An alternative name for open-end
- One who assembles individual bales or small lots into larger
volumes for others. One who acts as a selling agent for
shippers/growers and buyers for mills.
- Bt cotton
- A genetically engineered cotton carrying the Bacillus thuringiensis
(Bt) gene that produces, in every cotton plant cell, protein
crystals toxic to some insect pests.
- C -
- call option
- Gives the purchaser the right to buy the underlying futures
contract at the strike price up to expiration.
- A yarn preparation. During the carding process raw cotton
is separated, opened, cleaned and made into sliver.
- One of the world's largest producers of raw cotton. In
recent years a major import market.
- The process of describing cotton quality so that its value
can be determined. (See also staple length, grade, colour)
- clearing organisation
- The body resonsible for recording all futures transactions
at an exchange. also the guarantor of all options.
- An industrial yarn preparation. During the combing process,
fibres are combed to make them parallel in the sliver and
short fibres are removed.
- agreement between two or more parties to buy or sell commodity,
security, currency or index.
- the degree of whiteness of the cotton fibre.
- colour grade
- describes the colour of cotton lint. There are 30 standard
colour grades, of which 15 are physical standards (held
as boxed samples of the complete range of grades) and 15
- A system of spinning in which the fibre moves through the
process without interruption, eg ring-spinning.
- Cultivated cotton is a perennial shrub, genus Gossypium.
There are two major species in current production - G. hirsutum,
commonly known as upland cotton, and G. barbadense or pima
cotton. (See also G.
cotton spinning system
- The process originally developed for spinning cotton, applied
now also to other staple fibres.
- count of yarn
- A number indicating the mass per unit length or the length
per unit mass of yarn.
- country damage
- Damage to cotton caused by moisture, dust or sand affecting
bales that have either been exposed to the weather or stored
on wet or contaminated ground.
- D -
- dead cotton
- An extreme form of immature cotton, having a thin fibre
wall. Can result from disease, pest attack or a foreshortened
- weight of a man-made fibre or yarn, expressed as the weight
in grams of 9,000 meters of the thread. The lower the number,
the finer the thread.
- reduction in price from the base rate in order to purchase
a lower grade.
- see raingrown
- E -
- Traditional producer of extra long staple cottons
- English cotton count
- An indirect system measuring length per unit of mass, ie.
The number of hanks (840 yards) per pound weight.
- F -
- A cotton fibre is classified in four ways, by its length,
micronaire, strength and uniformity. (See also length,
The fibre typically accounts for approximately 35 percent
of the weight of a seed cotton, though this proportion varies.
- foreign matter
- Anything that is not part of the cotton plant.
- futures contracts
- Based on a contract specification fixed by the exchange
and traded in a single commodity. In the case of cotton
there is only one significant international cotton exchange,
based at New York. The basic unit of trading is 22,700 kilos
or 50,000lbs (approximately 100 US statistical bales) of
Grade 41 (Strict Low Middling) staple 34 (1-1/16") micronaire
3.5-4.9. Less than 2 percent of contracts are actually delivered.
They are used more as a price discovery tool or a hedging
mechanism. (See also long,
- G -
- G. barbadense
- Pima or extra long staple cotton. Major producing countries
are Egypt, the USA, Israel, Peru and the Central Asian staes
of the former Soviet Union.
- G. hirsutum
- Typically known as upland cotton of medium staple length.
It is the major species of cotton grown worldwide, accounting
for about 90 percent of planted acreage.
- G. arboreum, G. herbaceum
- Asiatic short staple coarse cotton, usually of high
- ginning outturn
- the ratio of lint to seed cotton produced by the ginning
- Official US classification system given to lint to describe
its quality in terms of colour and leaf content. See Universal
Cotton Standards, colour,
- A middle-ranking producer and exporter of cotton. Production
is subsidised by the European Union.
- H -
- The subjective assessment of feel (roughness, smoothness,
- The balancing of operations in spot cotton, or related
products, with offsetting operations in cotton futures,
to reduce the risk of loss through price change during the
period of merchandising or manufacturing.
- High Volume Instrument testing. Systems by which high speed
bale by bale testing can be attained. Bales are tested for
- I -
- Third largest producer of raw cotton. The major producing
states are Punjab, Haryana, Rajasthan, Maharashtra, Madhya
Pradesh, Andhra Pradesh and Tamil Nadu. The bulk of output
is consumed domestically.
- J -
- A coarse, brown fibre from the stalk of a bast plant.
- K -
- Central Asian producing Republic. Cotton is sold by auction
at the Stock Exchanges in Alma-Aty and Shimkent.
- L -
- leaf grade
- describes the leaf or "trash" content of cotton lint.
There are 8 grades, of which 7 are physical (held as boxed
samples covering the range of grades) and the remaining
is a descriptive standard based on the other 7.
- The average length of cotton fibre after the ginning process.
- The cotton fibre obtained by the ginning process once the
cotton seed, leaves and casing have been removed.
- Someone who has bought cotton futures or other cotton,
is said to be long until he sells his contracts to another
or accepts delivery of the cotton at the maturity date of
the contract. (See Also NYCE,
- M -
- metric cotton count
- An indirect system measuring length per unit of mass, ie.
The number of kilometres per 1/2 kilogramme.
- The size of an individual cotton fibre taken in cross-section.
- Can be either fuzzy (immature seeds on which fibre development
ceased at an early stage) or bearded (a piece of seed coat
with long fibres attached). Both are often termed seed coat
- N -
- A small knot of tangled fibre.
- New York Cotton Exchange
- The New York Cotton Exchange
(NYCE®) was founded by cotton brokers and merchants
in 1870. It is the oldest futures exchange in New York.
(See Also futures
- O -
- Under the terms of an option contract, a buyer has the
right to buy or sell a futures (or other) contract, at a
specific price within a set period of time. The contract
price is not dependent on the current market price for the
contract item. The buyer is under no obligation to fulfil
- open-end spinning
- A process by which yarn is spun from a broken-up sliver
- The process of separating fibres from the pressed bale.
- organic cotton
- Organically grown cotton uses crop rotation, beneficial
insects, compost and other farming methods in place of chemical
fertilisers and intensive farming techniques.
- P -
- Fourth largest producer of raw cotton. The major producing
states are the Punjab and Sind.
- An amount by which a price is increased in order to buy
a product of a higher grade or quality.
- pima cotton
- Long staple cotton variety.
- polyester fibre
- Generic name for a synthetic fibre made from polyethylene
- measurement of fibre strength
- put option
- Gives the purchaser the right to sell the underlying futures
contract at the strike price up to expiration.
- Q -
- see also discountand
- R -
- raingrown cotton
- cotton grown using mainly water provided by the natural
cycle of rainfall rather than artificial irrigation. Also
known as dryland cotton.
- ratoon cotton
- crop that is cut back or cropped and is left to grow again
for another season.
- rayon fibre
- A man-made fibre made from regenerated cellulose.
- reginned cotton
- Reginned cotton is cotton that has passed through the ginning
process more than once, and has also already been baled.
It may go through the ginning again for additional cleaning,
blending or the removal of foreign material.
- A system of continuous spinning of staple fibre.
- S -
- Sea Island cotton
- Fine, long staple cotton grown in the West Indies.
- seed cotton
- Unginned, picked cotton.
- Someone who has sold cotton futures or other contracts
is said to be short until he buys the contracts back or
delivers the cotton at the maturity date of the contract.
- Describes the ply of yarn. A single is the most popular
ply and means , raw cotton twisted into a single thread.
- A modest producer of cotton, mainly irrigated. Qualifies
for EU subsidies.
- spot quotations
- Reported prices for all specific quality designations on
a certain trading day.
- spun yarn
- Yarn spun from staple fibre held together by twist.
- Cotton fibre considered with regard to its length and fineness.
- short staple : less than 25 mm
- medium staple : 25 to 30 mm
- long staple : 30 to 37 mm
- extra long staple : 37mm and above
- prices : firmness or steadiness
- fibre : power of the fibre to sustain the application of
force (as applied in spinning) without breaking.
- strike price
- The price specified in the option contract at which the
xxxx futures or commodity will move from seller to buyer.
- A producer of G. barbadense (Barakat) and upland
(Acala) cottons, mostly on major irrigation schemes.
- synthetic fibres
- Fibres or filaments produced from polymers. Not naturally
- T -
- The weight of wrapping bands or wires used to cover cotton
- The third largest Central Asian producing Republic of the
former Soviet Union after Uzbekistan
- technical analysis
- The attemp to forecast future market action on the basis
of past price behaviour. The underlying assumptions are
that price fluctuations are not strictly independant and
that certain chart formations tend to correlate with subsequent
- (grams per kilometre) A direct decimal count system for
describing the linear density (mass per unit length) of
fibres, filaments and yarns. The lower the number, the finer
- the leaf content of ginned lint.
- Major producer, consumer and importer of raw cotton. Production
is forecast to expand over the coming years, as more land
in the south east of the country is irrigated.
- The second largest Central Asian producing Republic of
the former Soviet Union after Uzbekistan.
- U -
- The degree to which the fibres in a sample are uniform
based on the ration of mean length to the upper half mean
length. Given as a percentage.
- United States of America
- One of the world's largest producers of raw cotton, and
customarily the largest exporter.
- Universal Cotton Standards
- Refers to American Upland Cotton. Established in 1924 as
an aid to promoting domestic and foreign trade. Recognised
by 18 countries in Europe, South America and Asia
- upland cotton
- Originally used to refer to cotton grown on raised lands
not prone to flooding. Now refers to short and medium staple
- The largest of the Central Asian producing republics of
the former Soviet Union, and recently the world's second
- V -
- Viscose fibre
- A man-made fibre spun from regenerated cellulosic material.
- W -
- Threads which run parallel to the loom
- Threads which run at right angles to the warp
- The manufacturing of cloth by the interlacing of yarns
- Worsted yarns are made from long fibers of 3 to 6 inches,
which are combed to lie parallel to each other, producing
a smooth, clean look. They are usually fine, tightly twisted
- X -
- Y -
- yarn number
- cotton yarn is measured by yarn number, based on how many
hanks (840 yards) there are in 1 lb of yarn. The higher
the number the finer the thread
- Z -
- # -