The global supply and demand balance sheet for January 2025/26 shows that, compared to the previous month, production decreased, consumption increased, ending inventories declined, and trade volume remained largely unchanged. Global cotton production decreased by over 350,000 bales, consumption increased by over 300,000 bales, and the global ending inventory for the 2025/26 marketing year was revised downward by 1.5 million bales.
PriceSeek’s analysis of lint cotton gives a long-short score of 2. The article indicates that in January 2025/26, global cotton production decreased by over 350,000 bales, consumption increased by over 300,000 bales, and ending inventories were revised downward by 1.5 million bales. This reflects a significant improvement in supply and demand fundamentals, with tightening supply and robust demand. This will have a substantial positive impact on spot prices, driving them upward.
Combined with cotton futures data (such as the closing price of the main contract 2605 at 14,625 yuan/ton), despite recent price volatility, fundamental support is expected to boost futures prices. It is anticipated that future contracts, such as 2605 and 2609, will benefit from reduced inventories and increased consumption.
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