China National Cotton Exchange Becomes Buyer of U.S. Cotton
MEMPHIS, Tenn—Growers and other sellers of U.S. cotton now have expanded opportunities to sell to buyers in China, the world’s largest consumer. China National Cotton Exchange (CNCE) will act as a buyer of offers on The Seam and resell them to its customers in China. CNCE is the largest trading platform in the country and currently has more than 4,300 mill buyers representing 80% of Chinese consumption.
CNCE will inform its customers, Chinese mills and merchants, of interior U.S. cotton available on The Seam. CNCE will purchase the cotton (ex-warehouse), resell it to their buyers and handle delivery to China.
Utilizing online trading technologies, CNCE is the exclusive platform for all procurement and sales of China’s national reserve cotton. The size and strength of CNCE’s network will enhance American growers’ competitive position.
“China is a crucial market for U.S. cotton growers,” said Kevin Brinkley, CEO of The Seam.
“The Seam is continually looking for ways to expand the reach of our safe, reliable cotton trading network around the globe. CNCE is another significant participant in that network.”
The Seam®, founded by leading global agribusiness companies, began operating the world’s first fully online neutral exchanges for cotton trading in December 2000. Since that time, the company has added other commodities such as grains, peanuts, and dairy to its trading platforms. The Seam also delivers food trading platforms for major manufacturers and reverse auction procurement systems for USDA.