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Amid a wave of broken contracts and price volatility, the International Cotton Association is...

Amid a wave of broken contracts and price volatility, the International Cotton Association is looking to strengthen a "default list" of firms that break contracts and then ignore arbitration awards in the $70B sector.  Farmers and mills have been accused of reneging on contracts as prices fluctuate, with the middlemen merchants suffering the most.
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  • andy marshall
    , contributor
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    A multi year trader, I have gone through msny years of reliable suppliers and buyers, with the raw cashew bulk trade. towards 1996 the dealings began to deteriorate, when markets became firmer, the suppliers began shipping substndard and off grade product or defaulting, meantime buyers began to reject shipments as off grade whenever markets dclined. It became obvious that the middle dealer could not long survive these conditions,and sought safer markets. Usa peanuts had a good long term record and again only once in a disaster crop year failed to have the material just when the merkets were necessaily high. Again the middle dealer had to face the music with the consumers, fortunately this was a rare occurrence and combined trade cooperation achieved a compromised reduced average delivery and pulled out of the predicament. Such circumstances nevertheless led to the fleeing of the middle man from such a hazardous trading asituation. essentially contracs were being defaulted and there was no legal redress, except for this long and bitter legal recource. And retirement was called for. Enough said.
    Andy (Nissim ) Marshall.
    4 Sep 2012, 06:46 PM Reply Like
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