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
Beef is leading the decline as slaughter drops and supplies tighten.
Ethanol demand held together last week, but lower production and thinner stocks put more focus on export strength. Production capacity is also strengthening over time and benefiting soybean farmers.
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.
Expanded export financing could provide greater support for ag sales abroad if buyers and lenders use the additional tools.
The farm bill is still moving, but the toughest amendment fights were pushed into today’s session. ASA President Scott Metzger joins us to discuss the risks of tariff actions on soybean exports, concerns over trade policy and production costs, and the importance of Farm Bill updates.
Higher input costs are making flexible marketing plans and updated break-even targets more important.

LATEST STORIES BY THIS AUTHOR:

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.
Higher freight rates and potential service disruptions are key concerns for agriculture, which relies heavily on rail to move commodities.
Pseudorabies case confirmed in Iowa herd prompts heightened biosecurity measures as U.S. swine producers work to prevent spread and protect herd health.
Wyoming cowboy and Dusty Vaquero Days founder J.B. Zielke joins us to preview his upcoming event in Gillette and to highlight the festival’s celebration of cowboy culture through music and community events.
Members from across the state will gather for competitions, workshops and leadership opportunities.
DOJ and USDA investigate beef industry concentration, with Big Four packers under scrutiny and a major settlement announcement expected later this week.