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
Favorable weather and hard work are leading to high strawberry yields and steady crowds at Green Acres Farm, a u-pick destination in Cochran, Georgia.
Federal officials are signaling a more aggressive push on beef packer concentration, but any direct market impact will depend on what the investigation actually finds.
The court’s decision to deny the defendant’s motion to exclude the expert’s testimony serves as a sharp reminder of the high burden required to exclude expert testimony, particularly in the agricultural context, where “experience” is often the currency of reliability.
Higher freight rates and potential service disruptions are key concerns for agriculture, which relies heavily on rail to move commodities.
DOJ and USDA investigate beef industry concentration, with Big Four packers under scrutiny and a major settlement announcement expected later this week.
Student Katelyn Lindsay is traveling the country to support growers and connect consumers to the crop.

LATEST STORIES BY THIS AUTHOR:

Cotton margins improved slightly, even as fertilizer and fuel costs rose due to the Strait of Hormuz disruption linked to the Iran war.
Flour milling demand stayed generally steady, but total wheat grind remained slightly softer year over year.
U.S. export inspections turned in another strong corn week.
The latest developments point to shifting export routes, higher congestion risk, and continuing cost pressure for grain, fertilizer, and energy shipments.
Tyson is still reshaping its beef footprint.
Cotton prices improved last week, but drought, storms, and uneven planting are keeping risk elevated.
Agriculture Shows
Farm Monitor shines a light on Southeastern agriculture and is the only weekly news and information program dedicated to Georgia’s largest and most important industry: agriculture.
Check out FFA Today, a fun and fast-paced show featuring fascinating stories about amazing kids and unique agriculture industries.
Farmweek is broadcast from Mississippi, one of the South’s most geographically diverse states. The Magnolia State’s most important resource is its people—and about a fourth of the state’s population hold jobs tied to agriculture.
“DocTalk” with host Dr. Dan Thomson will be teaming up with practitioners around the country to tackle issues with your livestock.