( China's cotton reserves were estimated to stand at 5,820 bales this year, accounting for 63 percent of the world's total, the United States Department of Agriculture said in a report. A bale is a standard unit of measurement for cotton and is equivalent to approximately 226 kg.

The government admitted to having "a high level of reserves" but did not divulge the exact figure. The USDA also estimated that global cotton consumption will grow by 2 percent this year, the third consecutive year for increased consumption. Consumption in China, India and Pakistan will account for 70 percent of the world's total, the USDA said.