China's Cotton Reserve Sale Shrank Yet Almost All of It Sold

China cotton import quota pressure eased as a rally in international cotton prices narrowed the domestic premium over imported cotton. Raphael Bulascoschi, StoneX Brazil Market Intelligence Analyst, explains how China balances state reserve auctions against additional cotton import quotas. China's smallest reserve cotton sale since 2018 found buyers for nearly all of its volume, and about 81% was imported cotton, mainly from the U.S. and Brazil. Reserve sales weigh on domestic prices, while import quotas let foreign cotton in and move international prices. Brazil supplied 58% of Chinese cotton imports in May. Discover Actionable Cotton Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/cotton?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_raphael_bulascoschi&utm_content=share 00:00 - Tiny China Cotton Sale Clears 01:40 - China's Quotas Versus Reserves 02:51 - Reserve Rotates Imported Bales 03:58 - Cotton Basis Sets Quota Timing 05:57 - Narrow Spread Cools 2027 Quota 06:40 - Brazil's China Share at Stake Like and subscribe for more financial market insights. #StoneX #RaphaelBulascoschi #Cotton --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social