Global cotton market prices are dependent on Chinese purchases.

01-Dec-2025 09:41 PM

New York. Although global cotton prices remain subdued due to pressure from abundant supply and adequate availability, improved trade relations between the United States and China are expected to strengthen demand and prices.

It is worth noting that after the deterioration of relations with the United States, Chinese importers increased their purchases of cotton from Australia and are now the largest buyer of Australian cotton.

Chinese millers can increase cotton imports from the United States only if they are confident that the sale of their textile products in the American market will not be hampered. This will require the United States to control tariffs.

The rise in American cotton prices is dependent on Chinese demand. There is no global shortage of cotton, and China and India are experiencing a strong inflow of the new cotton crop. China is currently engaged in negotiations with the United States.

Meanwhile, there are signs of a robust cotton production in Brazil. China's trade relations with Brazil are excellent, and China is already the largest importer of Brazilian soybeans. It may also increase cotton imports from there.

Last month, the US and Chinese presidents held positive talks, raising hopes for a boost in global trade in various agricultural products.

America's tariff policy had previously created uncertainty in the international market, affecting almost all countries. Now, the situation is gradually returning to normal. The US has been receiving a favorable response from China.