Galaxy Futures: The domestic and international cotton price spread limits the upside potential, but the expectation of reduced planting area in Xinjiang at low levels provides support

Domestic cotton is likely to experience mainly fluctuating trends in the medium to short term due to various factors. Future breakthroughs will depend on: the volume of import quotas, the implementation of Xinjiang’s production reduction, and upcoming weather conditions. Additionally, the potential reduction in planting area in the United States should be monitored. According to institutional surveys, U.S. cotton farmers intend to plant approximately 9.005 million acres in 2026, about a 3% decrease compared to 2025. Technically, cotton is still viewed as oscillating with a slight upward bias. (Galaxy Futures)

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