The New York Board of Trade said on Monday that it will raise the margin requirements on exchange traded cotton contracts and lowered cocoa margins, effective at the start of business on March 3.
It said the initial margin will be $2,240 an increase of $280 per speculative cotton contract.
The initial margin for hedged cotton contracts will be raised by $200 to $1,600. Maintenance margins will be $1,600, up $200, for both speculators and hedgers of cotton futures.
For cocoa, the exchange said, the initial margin will be lowered by $210 to $1,190 dollars per speculative cocoa contract.
The initial margin for hedged cocoa futures will be $850, a decrease of $150 per contract.
Maintenance margins will be lowered by $150 to $850 for speculative and hedged cocoa contracts.