Fundamental analysis involves comparing major supply and demand variables like production, consumption, and ending stocks.  This is usually based on organized tables, the prime example of which are published by USDA, and reproduced below:

Updated world cotton supply/demand.  USDA’s month-over-month adjustments in the March WASDE report reflected very minor adjustments to 2024/25 world cotton balance sheet.  Beginning world stocks were unchanged, month over month, while world production was a half million bales more than the previous month, mostly in China (+0.75 million) with Pakistan (-200,000) and Argentina (-50,000) slightly offsetting.  The aggregate change in world imports was 220,000 bales higher than in February, owing to a number of offsetting adjustments:  China (-500,000 bales), Pakistan (+500,000), Bangladesh (+200,000), Thailand (+20,000), Mexico (-80,000), and the EU (-30,000).  So overall there was an increase in world supply.

Demand-side monthly adjustments this month were also greater and totaled slightly more than the increase in supply.   World exports were raised by 200,000 bales month over month, mostly in Brazil (+200,000) and Turkey (+150,000), and partially offset by Australia (-100,000).  World domestic use was a net 590,000 bales higher, month over month, mostly in Pakistan (+300,000), Bangladesh (+200,000) and Thailand (20,000), and slightly offset by Mexico (-50,000) and the EU (-20,000).   The demand-side gains dominated those on the supply-side side, so the bottom line of all these adjustments was a very modest 80,000 bale increase in world ending stocks.  This adjustment would be historically neutral.

Updated U.S. cotton supply/demand.  The March  WASDE saw no month-over-month adjustments to the U.S. balance sheet (third column of numbers in the table above).  While neutral in the adjustment, this still leaves U.S. ending stocks at a bearish 4.9 million bales.

Fundamental analysis is fairly straightforward in its application.  However, there are a lot of moving parts and uncertainty in balancing supply and demand variables.  The price outlook can also be influenced by non-fundamental factors, particularly in the short run.