Granger causality tests and time series methods were used to identify the relationship between nearby futures price and net bale commitments of speculative traders in cotton. Ordinary least squares analysis was employed to find out the big hit ability of the speculative traders on nearby cotton futures price. Net positions of speculative traders aided in predicting the subsequent nearby futures price and the strongest response was observed within two weeks. Speculative traders had big hit ability and statistically significant relationships were found when they were net long and net long positions decreased as well as when they were net short and net short positions decreased.