June 19, 2012
China eyes one-million-tonne US cotton
China is seeking to purchase one million tonnes of US cotton to lift its government stockpiles, according to unknown sources.
US cotton is nearly 50% cheaper than the crop traded in China, according to the report, and still 20% less after freight costs. China is the world's biggest cotton user.
Cotton is one of Arizona's major farm crops and the state's is one of the larger US growers of cotton.
"The Chinese government has become the most important factor in global demand and supply," Dong Shuangwei, a senior analyst at Beijing Capital Futures Co., told Bloomberg.
