(Dow Jones) -- A small cotton-producers' cooperative lost its arbitration claim against commodities company Cargill Inc., ending a two-year dispute over a $35 million loss.
The case was filed with the Memphis Cotton Exchange by the Autauga Quality Cotton Association, an Alabama-based cotton cooperative.
Autauga alleged that Cargill cost it money in September 2011 when it decided to remove hedges put in place on Autauga's behalf.
The decision left farmers exposed to a sudden decline in cotton prices, Autauga alleged.
Cargill was hired as Autauga's marketing agent, which included helping the cooperative place hedges.
Arbitrators last week decided that Cargill ...