Questions over Chinese Cotton Imports

A contact heard recently that China purchased Indian cotton, but not for the State Reserve, and asked if we agreed or disagreed.

Yes, we agree that China purchased Indian cotton, but not JUST for reserve (that too) and not JUST Indian growths. Much of the cotton imports of late has been for consignment stocks in China that will be looked over & bought by local mills later.

The big purchases by China (February was second-biggest import month on record) was of Indian, U.S., and Brazilian…India didn’t have all the fun. The U.S. shipped more cotton to China in Feb than any month in nearly six years. What’s more, these big purchases of Indian cotton prompted all the panicky Chicken Little on-again, off-again policy vacillation in India over the cotton export ban. The 800-lb gorilla continues to exert its influence over the global cotton market.