WASHINGTON, D.C. (RFD News) — China has begun selling cotton from its government reserves, including U.S. cotton that has been held in storage for several years.
Cotton Incorporated’s Jon Devine says the sales could eventually create an opportunity for China to return to the market and replenish its supplies with U.S. cotton.
“Internationally, the news that’s been out there is coming from China. China has this reserve system, their cotton bank. They’ve been sitting on cotton supplies, haven’t done much for the past few years, but did start doing some sales starting this week. They are selling a lot of U.S. cotton that they’ve had in storage. With any luck, it’ll mean that they come back and try and refill their supplies with some U.S. cotton in a couple months.”
Meanwhile, USDA says China remains an active buyer of U.S. cotton, purchasing 15,500 bales last week. Total upland cotton exports for the current marketing year also continue to run ahead of last year’s pace.
