China’s Zhengzhou Commodity Exchange plans to allow qualified overseas traders in the trading of cotton futures. Currently, overseas traders participate in the trading of crude oil, iron ores and PTA futures. China listed cotton futures on the exchange in June 2004, and since then a daily average of 144,000 lots (5 tonnes per lot) have been traded. In a recently issued white paper on cotton futures, the exchange said it seeks to further open up to increase its international influence, study international regulations and rules on cotton futures, and seek to involve overseas traders, according to Chinese media reports. Last year, China produced more than six million tonnes of cotton. Incidentally, China is the world’s largest producer, consumer and exporter of textiles.
