The other scenario facing the world cotton market is the well-known China situation. Record volumes of cotton are in storage, but are locked up without any key available to the warehouse. China holds some 60.0 million bales in its Strategic Reserve, and most of that is not available to the market. With respect to supply availability to the Chinese mills or the world export market, that cotton does not exist. Additionally, China is set to produce another crop that, along with raw cotton imports and cotton yarn imports, will exceed the level of cotton demanded by Chinese mills. The net effect will likely further increase the supply of stocks held by the Chinese government – and isolated from the market. Nevertheless, China must move that Reserve cotton to market at some time.