Core Viewpoint - Cotton prices have shown a strong upward movement recently, but there are no substantial factors to support a sustained bullish trend in the market [1][3][4] Supply and Demand - Domestic cotton inventory in Xinjiang continues to decline, and transportation costs have decreased, leading to increased basis quotes from traders [1] - The demand from textile factories is weak, with a significant amount of cotton (estimated over 400,000 tons) yet to be priced, which may provide short-term support for cotton prices [1][2] - Weaker terminal demand has resulted in rising inventory levels for spinning enterprises, causing a decrease in their operating rates [2][4] Market Outlook - Institutions like Everbright Futures suggest that the likelihood of cotton prices maintaining a strong performance is low due to weak demand and sufficient inventory levels across the supply chain [3][4] - The market is currently facing pressure from a strong resistance level around 13,620 yuan/ton, which has been tested multiple times [3] - The overall market sentiment remains cautious, with potential risks accumulating due to declining spinning rates and rumors of increased import cotton quotas [5]