China's lowering its cotton reserve stocks could lead to more opportunities for exports of US cotton. China has begun a long-overdue reduction of its strategic cotton reserve stocks which have hung over the world’s cotton markets since 2014.
Last summer, the Chinese government sold 12 million bales a much larger number than many analysts expected from its reserve. Now, reports say that China is expanding its textile mill capacity in Xinjiang Province. This could bring some interesting outcomes in world cotton market including the potential for higher cotton prices.