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.
RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
September 29, 2025 01:57 PM
·
Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.
September 29, 2025 12:17 PM
·
September 29, 2025 11:54 AM
·
Beginning Farmers and Ranchers, Crop Insurance, and a Business Planning Complication
September 28, 2025 01:56 PM
·
Strong corn exports are anchoring U.S. trade, while soybean sales remain steady, but shipments lag.
September 26, 2025 04:48 PM
·
RFD-TV Farm Legal and Taxation expert Roger McEowen joined us Friday to break down the executive order and what it means for farmers and ranchers.
September 26, 2025 02:47 PM
·
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
September 26, 2025 01:36 PM
·
FarmHER Christina Woerner McInnis is revolutionizing soil health in Alabama with SoilKit, a cutting-edge tool.
September 26, 2025 11:55 AM
·
Transportation challenges are mounting as droughts lower Mississippi River levels and push freight rates higher.
September 25, 2025 04:54 PM
·
