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According to the China Cotton Information Centers weekly report on the Chinese cotton market on April 6th, the following points were observed: 1. Price Dynamics: The average settlement price of the Zhengzhou cotton futures main contract for the week of March 30th-April 3rd was 15,331 yuan/ton, basically unchanged from the previous week. The average settlement price of the New York cotton futures main contract was 70.47 cents/lb, up 2.10 cents/lb from the previous week, a rise of 3.1%. Domestic cotton prices were 3,244 yuan/ton higher than international cotton prices, with the price difference narrowing by 382 yuan/ton compared to the previous week. The average market price of domestic C32S carded yarn was 22,285 yuan/ton, up 92 yuan/ton from the previous week, a rise of 0.4%. 2. Macroeconomic Situation: The escalating situation in the Middle East exacerbated concerns about global stagflation, with New York crude oil futures breaking $110 for the first time in four years. A report from the United Nations Conference on Trade and Development showed that the average daily ship traffic through the Strait of Hormuz plummeted by 95% month-on-month in March. Domestically, the manufacturing PMI returned to expansion territory in March to 50.4%, indicating a slight recovery in economic activity. 3. Supply and Demand Situation: The International Cotton Advisory Committees April report increased its global cotton production forecast for 2026/27 by 100,000 tons to 24.9 million tons. The USDAs intended cotton planting area in March was 9.64 million acres, a 3.9% year-on-year increase, but drought conditions currently affect 90% of major producing areas. As of April 2nd, the national cotton sales rate was 81.3%, a 16.7 percentage point increase year-on-year. New orders for downstream textile companies have weakened slightly, and some companies have seen a decline in operating rates. 4. Market Outlook: The expectation of tight supply in the new year and domestic policies to expand domestic demand provide strong support for the domestic cotton market. It is expected to continue its range-bound trading pattern in the near term, requiring close monitoring of spring planting weather in the Northern Hemisphere and factors such as the US-China trade negotiations.On April 6th, the ASEAN Plus Three Macroeconomic Research Office released its annual report, "ASEAN Plus Three Regional Economic Outlook 2026." The report projects that the ASEAN Plus Three region will grow by 4.0% in both 2026 and 2027. However, the report also points out that the escalating conflict in the Middle East and significant disruptions to global energy supplies have increased the downside risks to the regions economic outlook. The report shows that the regions economic growth is projected to reach 4.3% in 2025, higher than previously expected. Demand for semiconductors driven by artificial intelligence is a key driver of export growth.Japans Topix index rose 1% on the day.On April 6, local time, Iran claimed that it launched three rounds of missiles at Israeli territory within 20 minutes. Israel stated that Iran launched at least 10 missiles carrying cluster warheads in the three rounds of attacks.On April 6, Ali Velayati, foreign affairs advisor to Irans Supreme Leader, warned the United States on April 5 that if it "makes another mistake," the Iranian-led resistance front would retaliate by blocking the Bab el-Mandeb Strait. Velayati posted on social media that day: "Today, the unified command of the resistance front views the Bab el-Mandeb Strait as much as the Strait of Hormuz. If the White House makes another foolish mistake, it will soon realize that with just one move, global energy and trade flows can be disrupted."

Hershey, Nestle, and Cargill win the dismissal of a claim of child slavery in the United States

Charlie Brooks

Jun 29, 2022 11:06


Tuesday, a federal judge in Washington, D.C. dismissed a case brought by eight Malians claiming child slavery on Ivory Coast cocoa plantations against Hershey Co (NYSE:HSY), Nestle SA (SIX:NESN), Cargill Inc, and others.


U.S. District Judge Dabney Friedrich determined that the proposed class action plaintiffs lacked legal standing to sue because they failed to prove a "traceable nexus" between the seven defendant companies and the individual farms where the plaintiffs worked.


She added that the plaintiffs did not adequately explain the role of intermediaries in the cocoa supply chain, and that the companies did not oversee actions in "free zones" where 70 to 80 percent of cocoa is farmed.


Mali and Ivory Coast share a border in West Africa.


The plaintiffs claimed they were trafficked as children after being approached by strangers who promised them employment for which they would be compensated, but did not pay them, threatened them with starvation if they did not work, and forced them to live in squalor.


Their attorney, Terry Collingsworth, said that the plaintiffs plan to file an appeal to "compel the businesses to keep their agreements and put an end to this dreadful system they have created."


Other defendants included Mars Inc, Mondelez International Inc (NASDAQ:MDLZ), Barry Callebaut AG, and Olam International Ltd.


In court filings, the seven defendants said that they "strongly abhor the practice of forced labor" and that they were addressing non-forced child labor in cocoa supply chains.


However, they contended that the plaintiffs' too broad legal theory may hold too many parties liable for forced child labor, including consumers and merchants who would benefit from lower prices.


In accordance with the Reauthorization of the Trafficking Victims Protection Act, the plaintiffs filed suit.


The Supreme Court of the United States rejected a similar case brought by six Malians against Cargill and Nestle under the Alien Tort Statute of 1789 in June of last year.


This was the most recent in a line of judgments denying access to federal courts based on human rights breaches occurring outside the United States.


Coubaly et al. v. Cargill Inc. et al., U.S. District Court, District of Columbia, case number 21-00386.