Hedging ratios based on regressions of closing spot quotations and futures prices embody closing basis behavior. Hedge ratios different than one imply closing basis varies with closing price level. Cotton hedge ratios for selected markets and all futures contracts were essentially one for the October and December harvest period and generally less than one for the March, May and July post-harvest futures months. Using hedge ratio equations to forecast net prices for short hedges reduces hedging price risk versus a 100 percent hedge because the systematic closing basis behavior is included.