Guotai Junan Futures: Cotton futures are expected to maintain a slightly bullish trend

Since 2025/26, domestic cotton demand has remained strong, providing solid support for cotton futures and spot prices; at the same time, based on optimistic expectations for demand in the new year and the fact that cotton imports are mainly policy-driven, the market is closely watching the new domestic cotton crop situation. If there is a year-on-year reduction in domestic cotton production in 26/27, domestic cotton supply will become tight. May is a critical period for planting and growing cotton in Xinjiang. Under the mood of supply concerns, cotton futures are expected to remain relatively strong, but attention should be paid to the marginal changes in cotton demand in May and June, as well as whether there will be any policy influences. (Guotai Junan Futures)