Newsletter May 7, 2007

There has been another bid for Australia's biggest
cotton company despite the drought and low world
prices. Queensland Cotton's chief executive Richard
Haire says while the industry is struggling, the
opportunity to invest in Australia is behind the takeover
war.

Cotton in Australia...

The Chinese delegation "will be signing a contract
with the entire cotton industry in Memphis on Friday,"
Allen said. "They are a subgroup of a very large
delegation that is traveling the U.S. and they are here
purchasing $11 billion worth of products

Trade officials tour Miss...

A long drought in southwest China has left nearly 4
million people and 4.5 million livestock short of
drinking water. The drought has made it impossible
to plant crops in large areas, with some crops drying
up. Droughts and other weather-related problems are
common in China, which already suffers from natural
water shortages, especially in the north.

4 million short of drinking water...

Drought has affected some part of China every day
since the beginning of the year. Currently, 25 percent
more Chinese land is affected by drought than the
average in previous years. The Hebei provincial
government has started to ration its underground
water supply to meet production and domestic
demand.

China's wheat output is expected to go down...

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