INSTRUCTIONS FOR PREPARING AND FILING REPORTS ON CFTC FORM 304
(See Regulations Under the Commodity Exchange Act)
PARTS I & II FIXED-PRICE CASH POSITIONS IN COTTON AND COTTON PRODUCTS
WHO MUST REPORT: (1) All persons holding or controlling futures positions that are reportable
pursuant to Regulation 15.00(b)(1)(ii) any part of which constitute bona fide hedging positions as defined in
Regulation 1.3(z). (2) All persons holding or controlling futures positions that are reportable pursuant to
Regulation 15.00(1)(i) who have received a special call from the Commission or its designee as specified in
Regulation 19.00(a)(3).
WHAT TO REPORT: Report your total cash position in each category listed below excluding from the
CFTC 304 report only those commodities, products, and by-products that you normally exclude when determining
your cash position for hedging. When reporting cotton products, list on a separate line each type of product you
own or have contracted to buy or sell at a fixed-price. Include unfinished products made from cotton not included
elsewhere.
1. Equity Stocks. The quantity of equity cotton (“cotton in the loan”) that you have with the Commodity
Credit Corporation under the provisions of the Upland Cotton Program of the Agricultural Stabilization and
Conservation Service of the U.S. Department of Agriculture.
2. Certificated Stocks. The quantity of certificated cotton that you own.
3. Non-Certificated Stocks. The quantity of cotton and cotton products that you own and have paid for
at fixed prices, excluding certificated cotton.
4. Open Purchase and Sale Commitments. The quantity of open fixed-price cash purchases and sales of
cotton and cotton products.
If you are “cross-hedging” a commodity in cotton futures, report the entire quantity of stocks owned
and fixed-price purchases and sales of the commodities you are cross-hedging in the space labeled “Other.” The
quantities should be converted to the equivalent amounts of the commodity future being used for hedging. If you
included “cross-hedged” cash commodities in Part 1 of this report, you must also report the entire quantity of stocks
owned and open fixed-price purchases and sales of the commodity you are cross-hedging in terms of the actual
commodity in Part II.
WHEN TO REPORT: Report monthly as of the close of business on the last Friday of the month.
Reports must be received in the Commission’s New York office not later than the second business day following the
Friday date of the report. Filings made in response to a special call under Regulation 19.00(a)(3) shall be made
within one business day of that call unless otherwise specified in the call.
PART III UNFIXED-PRICE COTTON “ON CALL”
WHO MUST REPORT: Cotton merchants and dealers holding or controlling futures positions that are
reportable pursuant to Regulation 15.00(b)(1)(i).
WHAT TO REPORT: Report unfixed-price “on call” purchases and sales by the New York Board of
Trade futures contract month on which they are based. Specify if transactions are based on anything other than New
York Board of Trade futures.
WHEN TO REPORT: Report weekly as of the close of business Friday. Reports must be received in the
Commission’s New York office not later than the second business day following the Friday date of the report.
GENERAL PROVISIONS
WHERE TO REPORT: CFTC Eastern Regional Office, 140 Broadway, 19
th
Floor, New York, NY,
10005, (646) 746-9770, facsimile (646) 746-9941 or 9942, except as otherwise authorized by the Commission or its
designee.
To ensure receipt of the report by its due date, either transmit the report by facsimile, or report the
information contained on the form to the Commission by telephone and mail the report not later than midnight of its
due date.
Use standards and conversion factors usual and common to your business.
If you have no cash position, write “NONE” on the form and return it to the CFTC.
If inter-company or intra-office purchases and sales of cotton or cotton products are included in your
positions, you must show for each related company or office the quantities of cotton or cotton products involved.
