China's Extensive Cotton Supports Dominate World Market; Makes U.S. Farm Supports Vital

Farms.com - Darren Hudson, the director of the Cotton Economics Research Institute at Texas Tech University, said in an interview with Farm Policy Facts that if China “abandons its reserve policy in favor of paying its producers, that could result in significant price declines leaving U.S. (cotton) producers vulnerable to low prices for no other reason than China dumping its stocks.”

China is more than just the 800-pound gorilla in the world cotton market. The Asian giant is both the world’s biggest producer and importer. As such, China has tremendous market manipulating power that leaves other producers, including those in America, at its mercy.

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Darren Hudson, the director of the Cotton Economics Research Institute at Texas Tech University, said in an interview with Farm Policy Facts that if China “abandons its reserve policy in favor of paying its producers, that could result in significant price declines leaving U.S. (cotton) producers vulnerable to low prices for no other reason than China dumping its stocks.”

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