December 12, 2013
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. China provides unstinting support to its cotton farmers with the end result being that cotton prices in China are often found above world market prices, yet actions in China can create extreme fluctuations in world prices that affects everyone else.