Post’s forecast for China’s cotton production is lowered to 4.6 million metric tons (MMT) in MY16/17, based on decline in acreage despite a forecast yield gain in Xinjiang. This production forecast is slightly higher than the USDA July official data of 4.57 MMT and lower than the MY15/16 estimate of 4.83 MMT. MY16/17 cotton use is forecast up to 7.65 MMT mainly due to forecast decline in yarn imports. As China will continue to sell its high state cotton reserves to satisfy the domestic textile sector demand, China is unlikely to add additional import quotas. Correspondingly, forecast for MY16/17 cotton imports remain low at 980,000 tons.