China’s Shifting Cotton Policies Keep the Markets on Edge

China’s buying decisions continue to be a critical factor in shaping cotton prices and export opportunities worldwide.

LUBBOCK, Texas (RFD-TV)China continues to play a decisive role in the international cotton market, even as it leads the world in production. For the 2025 crop year, Chinese output is projected at 31.5 million bales. However, the country still imported 5.3 million bales, ranking just behind Bangladesh, Vietnam, and Pakistan.

Import patterns are dictated by government quotas, which allow 894,000 tons at a low tariff rate of one percent, while additional imports face a 40 percent tariff.

“So, in the case of cotton, they don’t have a lot of other countries to turn to other than the United States; there aren’t that many countries that grow that cotton,” Midwest Marketing Solutions President Brian Hoops told RFD-TV News. “You look at where they can buy soybeans from—well, they have a monster crop out of South America, both Brazil and Argentina this year. Big corn crops out of Brazil, record-large there. They can buy corn and soybeans from other countries.”

Economists with the University of Georgia and the Georgia Cotton Commission explain that these policies, along with reserve stock programs, can cause dramatic swings in demand from year to year. Heavy purchases in 2023 lifted global demand, but reduced China’s need for imports in 2024 while boosting domestic output.

Past examples, including the 2012–2014 period, demonstrate that reserve build-ups followed by cutbacks can exert lasting pressure on global prices.

Tony’s Farm-Level Takeaway: For U.S. growers, the uncertainty adds risk during harvest and marketing. China’s buying decisions continue to be a critical factor in shaping cotton prices and export opportunities worldwide.

LATEST STORIES BY THIS AUTHOR:

Jake Charleston, with Specialty Risk Insurance, joins us now for an industry update and advice for cattle producers as they consider options for managing the risks of a murky market.
The National Milk Producers Federation will launch a new advocacy campaign to secure a final vote, urging House lawmakers to approve the bill as soon as they return from the Thanksgiving recess.
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
A regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture, prepared by RFD-TV Markets Specialist Tony St. James, for the week of Monday, November 24, 2025.
Texas Ag Commissioner Sid Miller warns horse owners after EHV-1 cases linked to the Waco WPRA Finals. Horses linked to recent Waco events should be isolated and closely monitored, as early action is critical to stopping the spread of EHV-1.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.