China is still buying U.S. cotton despite the standoff on soybeans

China has been largely absent from U.S. markets lately, but not when it comes to cotton. It’s a buy that, traders say, isn’t surprising given China’s limitations.

NASHVILLE, Tenn. (RFD-TV) — China has been largely absent from U.S. markets lately, but not when it comes to cotton. This week’s export sales data revealed some export purchases headed for the Asian nation. It is a buy that traders say is not surprising, given China’s limitations.

“So, in the case of cotton, they don’t have a lot of other countries to turn to other than the United States,” explained Brian Hoops. “There aren’t that many countries that grow that cotton. 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.”

Wheat is another area that could be under pressure this fall. Hoops says production has ramped up in places like Russia, Argentina, Australia, and Ukraine. All those nations, he says, are boosting wheat output over last year.

Related Stories
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
A Reuters report shows China has a soybean “glut,” finding stockpiles at Chinese ports are at record levels, with crushers there holding the most supplies since 2017.
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.

LATEST STORIES BY THIS AUTHOR:

Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
FFA Central Region Vice President Claire Woeppel joins FFA Today to share her story and excitement to connect with FFA members nationwide.
NRECA CEO Jim Matheson reacts to the U.S. House’s passage of the SPEED Act, which aims to streamline federal permitting for energy and infrastructure projects, and discusses its potential impact on rural communities.
Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
USDA Undersecretary Luke Lindberg outlines the Farm Bridge Assistance Program and responds to calls from lawmakers and ag leaders for more assistance and expanded trade opportunities for farmers.
Callahan is no stranger to agricultural trade and has been with the U.S. Trade Representative’s office since 2016.