Opening Statements

Remarks as prepared for delivery:

I talk frequently about the importance of derivatives markets for managing risk. Today, the Committee will take up H.R. 2620 to allow cotton merchants, ginners, and shippers the opportunity to try and craft a new futures contract that better matches the risks they face in a global market place.

H.R. 2620 would provide flexibility to U.S. futures exchanges on how foreign cotton, delivered to foreign ports would be inspected and graded when it is tendered at settlement. To be clear, the language makes no changes to how domestic cotton is inspected and graded.

As we pass legislation that allows for a new risk management tool, I would note that the Committee is mindful of the fact that the existing No. 2 Contract works well for the U.S. cotton industry. As we move forward, the Committee will continue to monitor cotton futures markets to understand the impact that any new contract has on U.S. cotton producers and market participants.

I want to conclude by thanking Mr. Austin Scott and Mr. David Scott for their work on this issue—both in this Congress and the last.

With that, I yield to the Ranking Member for his remarks.