On January 5th, the quoted prices at China's main ports experienced a slight decline. The international cotton price index (SM) stood at 73.97 cents per pound, down by 0.56 cents per pound, translating to a general trade port delivery price of 12,870 yuan per ton (calculated based on a 1% tariff and the exchange rate using the Bank of China's middle rate, the same applies below). The international cotton price index (M) was 72.10 cents per pound, down by 0.65 cents per pound, translating to a general trade port delivery price of 12,549 yuan per ton.

PriceSeek analysis of ginned cotton:
Bull-bear score: -1
Both the international cotton price index (SM) and (M) declined, with decreases of 0.56 cents per pound and 0.65 cents per pound, respectively. This translates to a drop in the spot port delivery price in RMB to 12,870 yuan per ton and 12,549 yuan per ton. This reflects relatively ample supply or weak demand in the spot market, exerting a generally bearish impact on ginned cotton spot prices, which may further depress prices. The limited magnitude of the decline suggests market adjustments rather than sharp fluctuations. It is advisable to monitor subsequent changes in supply and demand.

Cotton yarn:
Bull-bear score: -0.5
As the primary raw material for cotton yarn, the decline in cotton spot prices may lead to reduced production costs for cotton yarn. However, due to uncertainties in downstream demand, cotton yarn spot prices face slight downward pressure. The current limited decline in cotton prices results in a neutral-to-bearish transmission effect on cotton yarn. It is necessary to observe whether demand from the textile industry supports price stability.