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.
FarmHer Morgan Flowers combines her legal background with a love for cheese making at Flowers Creamery in Ethridge, Tennessee.
October 10, 2024 12:25 PM
·
In his latest Firm to Farm blog post, Ag Legal & Taxation Expert Roger McEowen examines contracts, insurance, and property rights and how those legal processes can impact your farm or ranch operation.
October 08, 2024 02:26 PM
·
Digital contracts are becoming more common for farmers and ranchers, which means some unique legal issues might arise. RFD-TV’s farm legal expert Roger McEowen briefly examines those.
October 06, 2024 02:15 PM
·
FarmHER Debra Lockard joined us Friday on the Market Day Report to discuss her upcoming show episode, which premieres on Tuesday, October 1 at 9:00 PM ET, only on RFD-TV!
September 30, 2024 11:03 AM
·
Meet FarmHER Debra Lockard, a third-generation Tennessee produce grower who splits her time running two farms in West Tennessee and teaching ag classes that promote sustainable farming practices in her Memphis community.
September 26, 2024 05:55 PM
·
RFD-TV ag legal expert Roger McEowen examines common issues facing farmers, ranchers, and rural landowners: SAF fuel, R&D credit, drones, and cleaning fencerows.
September 17, 2024 12:15 PM
·
