According to the National Cotton Market Monitoring System survey, as of early January 2026, the average inventory usage days for surveyed enterprises' cotton were approximately 39.3 days, an increase of 0.6 days month-on-month and 4.4 days year-on-year. It is estimated that the national cotton industrial inventory is about 861,000 tons, up 1.5% month-on-month and 12.5% year-on-year.

PriceSeek Analysis: Cotton, Bull-Bear Score: -1.5
The article indicates that cotton industrial inventory reached 861,000 tons in early January 2026, up 1.5% month-on-month and significantly up 12.5% year-on-year. The increase in inventory usage days suggests ample supply and relatively weak demand, exerting downward pressure on spot prices. Combined with futures market data, cotton contracts on the Zhengzhou Commodity Exchange (e.g., the 2605 contract closed at 14,590 yuan/ton, down 80.00 yuan for the day) generally show a downward trend. Changes in open interest indicate some capital withdrawal, reinforcing bearish expectations. It is anticipated that short-term futures prices will remain under pressure, with the possibility of further declines.

Cotton Yarn, Bull-Bear Score: -1.5
As a downstream product of cotton, cotton yarn prices are significantly affected by the increase in raw cotton inventory. Ample cotton supply may weaken production cost support, while the growth in industrial inventory suggests insufficient terminal textile demand, negatively impacting cotton yarn spot prices. Futures data show that cotton yarn contracts on the Zhengzhou Commodity Exchange (e.g., the 2603 contract closed at 20,535 yuan/ton, down 135.00 yuan for the day) mostly declined, with shrinking trading volumes and changes in open interest indicating cautious market sentiment. It is expected that futures prices will follow the downward trend of cotton, maintaining short-term downside risks.