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
Transporting pollinator colonies—primarily honey bee hives—is a major logistical operation in U.S. agriculture. Costs can vary widely depending on distance, fuel prices, labor, and timing.
Pat Hord with the National Pork Producers Council joined us to recap producer meetings in Washington and discuss key policy priorities including Prop 12 and agricultural labor.
Kaleigh Backstrom says her early involvement in 4-H helped set her on that path and sparked her interest in veterinary medicine.
Groundbreaking Marks Next Major Milestone in Strengthening U.S. New World Screwworm Preparedness
The 91st anniversary of Black Sunday highlights how the Dust Bowl disaster led to modern soil conservation programs still shaping U.S. agriculture today.
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.

LATEST STORIES BY THIS AUTHOR:

RFA President and CEO Geoff Cooper joined us to discuss the proposed E15 amendment in the Farm Bill, industry reaction to the legislation, and the outlook for year-round E15 sales.
USDA Secretary Brooke Rollins plans a farm visit in Missouri, hinting at a possible fertilizer relief announcement on RFD-TV earlier this week. USDA also restructures its research infrastructure and launches new food-safety centers.
Rising ethanol stocks and softer gasoline demand bear watching, but stronger blending activity and exports offered some support.
Corn export demand remains supportive, but weak pork and rice sales show uneven global demand trends.
Rising poultry supply is pressuring prices despite steady demand.
As part of this effort, USDA will establish a new National Food Safety Center (NFSC) in Urbandale, Iowa, which will serve as the primary hub for FSIS administrative, technical, and support operations.
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.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.