The number of methods of marketing open to Australian cotton growers has increased in recent years, providing growers with an opportunity to better manage financial risk. In particular, processing and marketing organisations now administer hedging strategies involving the use of futures markets. The main alternative marketing methods , including strategies using futures, have been simulated for the years from 1973-74 to 1987-88 in an attempt to quantify the levels of recurin and risk that they provide. It is concluded that the partial hedging strategies now available provide an opportunity to manage financial risk, albeit at a slight cost