China, US Ink US $500 Million Cotton Deal

Avatar for Matt Hopkins By Scott C. Lucas|29 May 2007

The state of Tennessee has a history of cooperative work with China, as progressive Memphis-based cotton merchants have been trading with China since the early 1970s. At the signing ceremony, that relationship deepened as merchants signed contract after contract with Chinese textile mills, selling a total of 360,000 tons or 1.7 million bales.

There is little way to know when the contracts will be shipped or what percentage represent new sales. Last week, the US Department of Agriculture (USDA) reported that China had purchased 3.7 million bales of US cotton, down about 55% from the same period last year. The good news is that Chinese buyers have agreed to buy 30% more than they did at last year’s signing ceremony, signaling growth in world demand for Chinese textiles.