China’s reserve policies mystifying world’s cotton analysts

Last year, the Chinese government only had a gap of 5  million bales between what the country’s farmers grew and what its textile  manufacturing sector was expected to spin. Yet China imported 24.5 million  bales of cotton from around the world. These purchases and China’s support  price of roughly $1.25 per pound are creating a surplus stocks situation that  is mystifying to say the least, according to cotton buyer Joe  Nicosia.

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