The cotton of 3 yuan a catty you mentioned may be of poor quality and does not meet the requirements of futures delivery.

The following is for reference:

Delivery grade and premium of cotton futures contract 1

Delivery grade and premium of cotton futures contract 1:

(1) benchmark deliverable: 328B domestic serrated fine wool white cotton conforming to GB1103-1999.

(2) Substitute and premium: the first-class premium of domestic serrated fine wool white cotton meets the requirements of GB1103-1999 is 450 yuan/ton; Secondary water 300 yuan/ton; Four-grade premium 600 yuan/ton, domestic serrated fine wool white cotton with grade five and below is not allowed to be delivered.

Domestic serrated fine wool white cotton with a length greater than 28 mm (including 28 mm) can be delivered instead, and the same level with a length of 30 mm or more can be delivered at a premium of 100 yuan/ton, while domestic serrated fine wool white cotton with a length less than 28 mm cannot be delivered.

Domestic serrated fine-wool white cotton with a micronaire of grade A and grade B of cotton of the same grade shall not be delivered, and domestic serrated fine-wool white cotton with a micronaire of grade C shall not be delivered.