Report Industry Investment Rating - Not provided Core Viewpoints - Cotton is in a short - term oscillation range due to limited supply - demand drivers, with sufficient spot supply, increased basis order transactions, limited downstream market recovery, and cautious restocking by spinning mills [1] - Sugar is in a stage of loose supply - demand, especially in the international raw sugar market. After the overnight rise in the external raw sugar market, import profits have shrunk. It is recommended to adopt a low - buying strategy as the price has strong support below but limited upward drive [2][3] Summary by Related Catalogs Cotton - In February 2026, China's cotton imports were about 170,000 tons, a year - on - year increase of 44.1%. From January to February, the cumulative cotton imports were about 370,000 tons, a year - on - year increase of 41%. In February, China's imported cotton yarn was about 130,000 tons, a year - on - year increase of 13.1%. From January to February, the cumulative imported cotton yarn was about 290,000 tons, a year - on - year increase of 40.2% [1] - Supported by factors such as the high positive spread between domestic and foreign cotton prices, RMB appreciation, recovery of export orders for traceable cotton products, and the adjustment of the price difference between domestic and foreign cotton yarn from negative to slightly positive, the industry expected the year - on - year increase in China's cotton and cotton yarn imports from January to February 2026, but the growth rate was significantly higher [1] - Spot supply is sufficient, basis order transactions increase, the downstream market recovery is limited, demand needs further verification, and spinning mills are cautious about restocking, maintaining the strategy of buying on dips [1] Sugar - From January to February 2026, China's imports of syrup and white sugar premix powder (tax numbers 1702.90, 2106.906) were 83,000 tons and 59,200 tons respectively, with year - on - year increases of 7,500 tons and 26,600 tons. The total import volume was 142,200 tons, a year - on - year increase of 34,100 tons, or 31% [2] - In the 2025/26 sugar - making season (October - February), China's total imports of syrup and white sugar premix powder (tax numbers 1702.90, 2106.906) were 442,000 tons, a year - on - year decrease of 305,400 tons, or 41% [2] - The estimated cost of processing Brazilian sugar within the quota is 4,261 yuan/ton, and the estimated cost of processing Brazilian sugar outside the quota is 5,421 yuan/ton. Compared with the spot price of white sugar in Rizhao, the estimated profit of processing Brazilian sugar within the quota is 1,379 yuan/ton, and the estimated profit of processing Brazilian sugar outside the quota is 219 yuan/ton [2]