Guotai Haitong: Still optimistic about leading yarn companies benefiting from the performance flexibility brought by the rise in US cotton prices

Guotai Haitong Securities stated that US cotton began to strengthen in early March, with a price increase of nearly 10% so far, surpassing 70 cents per pound. With Brazil’s production reduction confirmed and both the US and China entering the cotton sowing season, the period from March to May is a key catalyst window for US cotton prices. We remain optimistic about leading yarn companies that will benefit from the flexibility in performance driven by the rise in US cotton prices.