All
participants in the market face difficult trading conditions given the
recent, widely divergent movement of prices within a short timeframe.
Regrettably, as a result, the temptation exists not to fulfil contracts
as prices fluctuate.
The
ICA has continually stressed the need for a safer trading market place
which can only be achieved through contract sanctity. To that end, the
mission of the ICA is to protect the legitimate interests of all those
who trade cotton whether they are buyers or sellers. The ICA Bylaws & Rules support equitable trading practices and provide an impartial and
effective dispute resolution service should it be required. Without this
trading framework, the market for buying and selling raw cotton would
be at best chaotic, and the associated increase in risk would doubtless
be reflected in higher prices.
The
ICA urges all parties to cotton contracts to bear in mind that, while
price fluctuations may mean some firms face short-term losses, the
longer-term view of maintaining good trading relationships and ensuring
contract sanctity will ultimately lead to a safer trading environment
and ensure the long-term viability of all market participants.