Cotton merchants sympathetic to flood problems

Major cotton merchants say they'll do all they can to relieve the pressure on flood-affected growers unable to fill pre-sold contracts.

Most of the cotton grown in Australia is pre-sold and contracted to merchants well before harvest of the crop begins, meaning farmers must deliver a certain amount of cotton at a set price.

Managing director of Queensland Cotton, Richard Haire, says merchant companies like his are also obliged to deliver contracts with spinners around the world.

"Where we can, where we feel we are actually going to be able to support growers in deferring these obligations and making them part and parcel of future commitments, then we will do that," he said.

"We are putting a lot of time and effort and thought into trying to come up with a solution that's going to work for both parties."

(Source: http://www.abc.net.au/rural/news/content/201101/s3122781.htm)