World's largest cotton importer has reaffirmed its status by agreeing to buy $300 million worth cotton fiber from the US.
In Memphis today, officials from China are set to sign an agreement involving seven leading closely held US cotton fibre supplier companies, which are - Allenberg Cotton Co., Calcot, Cargill Cotton, Dunavant Enterprises, Jess Smith, Paul Reinhart and Weil Brothers.
China will buy about 7.5 million bales, or $2.1 billion worth cotton from US for the year ending July 1, market sources say.
Incidentally, this is a record single commodity transaction in one year, sources infer.
United States Department of Agriculture (USDA), US cotton exports is estimated to reach 16.8 million bales, up from 16.4 million last year.
USDA forecast in February for next year starting August 1, 2006 is 17 million bales.
However, 21 million bales output has been predicted this year that is 2.7 million bales down last year's record output.
