China Cotton Reserve Sales May Boost Demand for U.S. Cotton Exports
By jayesh chouhan 2026-07-29 11:27:37
China’s Cotton Reserve Sales May Open Door for Higher U.S. Exports
China has started releasing cotton from its government reserves, including U.S.-origin cotton that has remained in storage for several years.
According to Cotton Incorporated economist Jon Devine, the move could pave the way for China to return to the global market to rebuild its reserves, creating fresh export opportunities for U.S. cotton producers.
Devine says China’s cotton reserve system, often referred to as its "cotton bank," has remained largely inactive in recent years. However, reserve sales began this week, with a significant volume of U.S. cotton being offered.
He says if the reserve stocks continue to decline, China may need to replenish its inventories in the coming months, potentially boosting demand for U.S. cotton.
Meanwhile, the U.S. Department of Agriculture reports that China continues to be an active buyer of American cotton. During the past week, China purchased 15,500 bales of U.S. cotton, while total upland cotton exports for the current marketing year remain ahead of last year's pace.
