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
As markets anticipate a return to normal trading following the New Year’s holiday, the possibility of the southern border re-opening to cattle is capturing much attention.
Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.
A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
Rep. Randy Feenstra, R-IA, details how the “One, Big, Beautiful Bill” Act (OBBBA) supports farmers, biofuels, and rural communities with tax breaks, crop insurance relief, and ag infrastructure.
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.

LATEST STORIES BY THIS AUTHOR:

Low prices are painful now, but production response could support stronger milk markets later in 2026.
Merck’s Gary Tiller discusses new virtual fencing technology and how fence-free livestock management could change the way ranchers manage land and cattle.
At CattleCon 2026 in Nashville, RealAg Radio’s Shaun Haney discusses profitability, consumer demand, and how the integrated U.S.–Canada beef supply chain impacts cattle producers across North America.
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
San Angelo Stock Show & Rodeo Association’s Trenton Priddy preview this year’s event, which is now streaming on RFD+
Dr. Peter Beetham, interim CEO of Cibus, joined us to discuss the status of EU gene-editing deregulation and its potential implications for agriculture.
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.