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.
Related Stories
The long-term viability of a ranching operation often hinges on how effectively its owners navigate the overlapping layers of IRS regulations, state tax incentives, and USDA disaster programs.
Galynn Beer of Tidal Grow Agri-Science joined us to discuss challenges in fertility management, the benefits of Align-N, and what growers can expect at Commodity Classic next week.
Tommy Roach with Nachurs Alpine Solutions discuss fertilizer decision-making, plant fertility strategies, and what farmers can learn at Commodity Classic.
Pre-filled Applications Available Online to Producers with a Login.gov Account

LATEST STORIES BY THIS AUTHOR:

Farmer and retired colonial Joe Ricker joined us to highlight Ag Safety Awareness Program Week, share his work supporting veterans and farmers, and offer guidance on making safety a year-round priority on the farm.
Dry conditions may tighten hay supplies before summer growth. John Mays of Central Life Sciences joined us to discuss the risks of extended grain storage, how quality can be affected over time, and what growers can do to protect their grain while waiting for market opportunities.
Crop value concentration keeps farm income tied closely to commodity price cycles.
High fertilizer costs and global risks threaten spring margins for growers.
Heightened Chinese inspections increase trade volatility for U.S. livestock exporters.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
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.