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Vietnam is biggest buyer of US cotton

The biggest buyer of US cotton was Vietnam followed by China. Bangladesh’s cotton imports from the US grew by 486 per cent. The largest consumer of US pima cotton is China.

US cotton is mainly exported to developing countries in Asia. Even as the US is likely to lose China and Turkey, the international market looks positive for US cotton prices. On the one hand, import demand from China is bound to rise with decreasing reserved cotton stocks. Despite high tariffs and exchange rate issues, consumption cannot disappear and Chinese buyers will look for alternative sources. On the other hand, large quantity of hedging and unfixed on-call contracts may lead to a market squeeze.

Trade dispute between US and Turkey may have an influence more on Turkey’s cotton textile market, with its high import dependency on US cotton. US cotton consuming countries are adjusting their cotton structure in the face of possible higher US cotton prices. The import dependency of Vietnam, Indonesia and Turkey is the highest, and for them to adjust their cotton structure is difficult. For China, the import dependency is actually low. If China cannot import US cotton, the influence on high-end market is large, but is low for the whole industry.