Report Summary 1. Report Industry Investment Rating No information provided. 2. Report's Core View - ICE cotton futures fell on Wednesday due to concerns about the global economy and geopolitical instability, and the market awaited demand signals. The ICE March cotton futures contract settled down 0.04 cents, or 0.06%, at 64.30 cents per pound. - In the domestic market, the national cotton commercial inventory is rising, and market supply is relatively sufficient. Brazilian cotton is arriving in large quantities, further increasing the inventory. - On the downstream demand side, the price of high - count yarn is firm, but overall market demand is weak. However, driven by cost, yarn prices remain stable, and the rebound in China's textile and clothing export growth in December still supports the market. - On the market, supported by stocking demand, it is expected to fluctuate strongly in the short term. [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - Zhengzhou cotton main contract closed at 14,730 yuan/ton, up 195 yuan; cotton futures top 20 net positions were - 152,789 lots, up 3,158 lots; main contract cotton positions were 799,956 lots, up 12,765 lots; cotton warehouse receipts were 9,944 lots, up 301 lots. - Cotton yarn main contract closed at 20,500 yuan/ton, up 15 yuan; cotton yarn futures top 20 net positions were - 1,850 lots, down 189 lots; main contract cotton yarn positions were 15,805 lots, down 1,156 lots; cotton yarn warehouse receipts were 59 lots, down 11 lots. [2] 3.2 Spot Market - China Cotton Price Index (CCIndex:3128B) was 15,839 yuan/ton, up 20 yuan; China Yarn Price Index (pure cotton carded yarn 32 - count) was 21,320 yuan/ton, unchanged. - China Imported Cotton Price Index (FCIndexM:1% tariff) was 12,514 yuan/ton, unchanged; China Imported Cotton Price Index (FCIndexM:sliding - scale duty) was 13,684 yuan/ton, unchanged. - Imported cotton yarn price index (pure cotton carded yarn 32 - count) arrival price was 21,066 yuan/ton, down 6 yuan; imported cotton yarn price index (pure cotton combed yarn 32 - count) arrival price was 22,555 yuan/ton, down 6 yuan. [2] 3.3 Upstream Situation - The national cotton sowing area was 2,838.3 thousand hectares, up 48.3 thousand hectares; the national cotton output was 6.16 million tons, up 540,000 tons. - The cotton - yarn price difference was 5,481 yuan/ton, down 20 yuan; the national industrial cotton inventory was 850,000 tons, up 65,000 tons. [2] 3.4 Industry Situation - Cotton import volume was 120,000 tons, up 30,000 tons; cotton yarn import volume was 150,000 tons, up 10,000 tons. - Imported cotton profit was 2,135 yuan/ton, up 1 yuan; the national commercial cotton inventory was 4.6836 million tons, up 1.753 million tons. [2] 3.5 Downstream Situation - Yarn inventory days were 26.33 days, up 0.21 days; grey fabric inventory days were 32.34 days, up 0.37 days. - Cloth output was 2.81 billion meters, up 0.19 billion meters; yarn output was 2.039 million tons, up 38,000 tons. - Clothing and clothing accessories export amount was 11,593,686 thousand US dollars, up 590,205.57 thousand US dollars; textile yarns, fabrics and products export amount was 12,275,733 thousand US dollars. [2] 3.6 Option Market - Cotton at - the - money call option implied volatility was 12.11%, up 0.12%; cotton at - the - money put option implied volatility was 12.12%, up 0.16%. - Cotton 20 - day historical volatility was 14.16%, down 0.02%; cotton 60 - day historical volatility was 9.1%, unchanged. [2] 3.7 Industry News - Cotton textile enterprises' cotton industrial inventory was increasing steadily and was at a high level compared to the same period last year. As of the end of December, the in - stock cotton industrial inventory of textile enterprises was 983,800 tons, up 44,200 tons from the end of last month. - Brazil's new cotton sowing continued. As of the week of January 17, the planting rate of Brazil's 2025/26 cotton was 36.3%, slower than last year but faster than the five - year average, 7.9 percentage points higher than the five - year average. [2]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The current national commercial inventory of cotton continues to rise, and market supply is relatively sufficient. Additionally, port pick - up has increased, and Brazilian cotton has started to arrive in large quantities, leading to a continued increase in inventory. In terms of downstream demand, the price of high - count yarn is firm, but overall market demand is weak. However, driven by costs, yarn prices remain stable. Moreover, the growth rate of China's textile and clothing exports in December rebounded compared to the previous month, still supporting the market. On the market, the previous expectation of a decrease in cotton planting area has been reflected in the market, and it is expected to be in an adjustment state in the short term [2] Summary According to Related Catalogs Futures Market - Zhengzhou cotton's main contract closing price is 14,525 yuan/ton, down 20 yuan; cotton yarn's main contract closing price is 20,500 yuan/ton, down 10 yuan. - The net position of the top 20 in cotton futures is - 150,374 lots, an increase of 10,718 lots; the net position of the top 20 in cotton yarn futures is - 1,509 lots, a decrease of 144 lots. - The main contract position of cotton is 788,099 lots, a decrease of 12,920 lots; the main contract position of cotton yarn is 16,289 lots, an increase of 1,511 lots. - The number of cotton warehouse receipts is 9,647 sheets, a decrease of 11 sheets; the number of cotton yarn warehouse receipts is 70 sheets, unchanged [2] 现货市场 - The China Cotton Price Index (CCIndex: 3128B) is 15,856 yuan/ton, down 24 yuan; the China Yarn Price Index for pure - combed 32 - count cotton yarn is 21,300 yuan/ton, unchanged. - The China Imported Cotton Price Index (FCIndexM: 1% tariff) is 12,582 yuan/ton, unchanged; the arrival price of the Imported Cotton Yarn Price Index for pure - combed 32 - count cotton yarn is 21,059 yuan/ton, down 8 yuan. - The China Imported Cotton Price Index (FCIndexM: sliding - scale tariff) is 13,722 yuan/ton, unchanged; the arrival price of the Imported Cotton Yarn Price Index for pure - combed 32 - count cotton yarn is 22,547 yuan/ton, down 9 yuan [2] Upstream Situation - The national cotton sowing area is 5,444 thousand hectares; the national cotton output is 6160 thousand tons; the national industrial inventory of cotton is 850 thousand tons [2] Industrial Situation - The monthly import volume of cotton is 120 thousand tons, an increase of 30 thousand tons; the monthly import volume of cotton yarn is 150 thousand tons, an increase of 10 thousand tons. - The daily profit of imported cotton is 2,158 yuan/ton, a decrease of 51 yuan; the national monthly commercial inventory of cotton is 468360 tons, an increase of 175300 tons [2] Downstream Situation - The inventory days of yarn are 26.33 days, an increase of 0.21 days; the inventory days of grey cloth are 32.34 days, an increase of 0.37 days. - The monthly output of cloth is 2.81 billion meters, an increase of 0.19 billion meters; the monthly output of yarn is 2039 thousand tons, an increase of 38 thousand tons. - The monthly export value of clothing and clothing accessories is 11,593,686 thousand US dollars; the monthly export value of textile yarns, fabrics and products is 12,275,733,101,731.408 thousand US dollars [2] Option Market - The implied volatility of at - the - money call options for cotton is 12%, a decrease of 1.35%; the implied volatility of at - the - money put options for cotton is 12%, unchanged. - The 20 - day historical volatility of cotton is 14.15%, an increase of 0.13%; the 60 - day historical volatility of cotton is 9.16%, an increase of 0.04% [2] Industry News - Mysteel research shows that the national commercial inventory of cotton is on the rise. As of January 16, 2026, the total commercial inventory of cotton is 5.6863 million tons, a week - on - week increase of 0.1133 million tons (a growth rate of 2.03%). Among them, the commercial cotton in Xinjiang is 4.7063 million tons, a week - on - week increase of 0.0222 million tons (a growth rate of 0.47%); the commercial cotton in the inland area is 0.533 million tons, a week - on - week increase of 0.0436 million tons (a growth rate of 8.91%). - The Intercontinental Exchange (ICE) market was closed on Monday due to the US Martin Luther King Jr. Day holiday [2]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The domestic cotton commercial inventory is continuously rising, and the market supply is relatively sufficient. The arrival of Brazilian cotton at ports increases the inventory. The downstream demand is generally weak, but the yarn price remains stable due to cost - driven factors. The growth in textile and clothing export in December supports the market. The previous expectation of reduced cotton planting area has been reflected in the market, and the market is expected to be in an adjustment state in the short term [2]. 3. Summary by Directory Futures Market - Zhengzhou cotton main - contract closing price is 14,545 yuan/ton, down 45 yuan; cotton yarn main - contract closing price is 20,510 yuan/ton, down 25 yuan. - Cotton futures' top 20 net positions are - 161,092 hands, an increase of 7,703 hands; cotton yarn futures' top 20 net positions are - 1,365 hands, an increase of 102 hands. - Cotton main - contract positions are 801,019 hands, down 21,592 hands; cotton yarn main - contract positions are 14,778 hands, down 437 hands. - Cotton warehouse receipts are 9,658 sheets, down 8 sheets; cotton yarn warehouse receipts are 70 sheets, unchanged [2]. Spot Market - China Cotton Price Index (CCIndex:3128B) is 15,880 yuan/ton, down 51 yuan; China Yarn Price Index (pure - cotton carded yarn 32 - count) is 21,300 yuan/ton, unchanged. - China's imported cotton price index (FCIndexM:1% tariff) is 12,582 yuan/ton, down 52 yuan; the arrival price of imported cotton yarn price index (pure - cotton carded yarn 32 - count) is 21,067 yuan/ton, down 10 yuan. - China's imported cotton price index (FCIndexM:sliding - scale duty) is 13,722 yuan/ton, down 32 yuan; the arrival price of imported cotton yarn price index (pure - cotton combed yarn 32 - count) is 22,556 yuan/ton, down 11 yuan [2]. Upstream Situation - The national cotton sowing area is 2,838.3 thousand hectares, an increase of 48.3 thousand hectares; the national cotton output is 6.16 million tons, an increase of 540,000 tons [2]. Industry Situation - The cotton - yarn price difference is 5,420 yuan/ton, an increase of 51 yuan. - The national industrial inventory of cotton is 850,000 tons, an increase of 65,000 tons. - The monthly import volume of cotton is 120,000 tons, an increase of 30,000 tons; the monthly import volume of cotton yarn is 150,000 tons, an increase of 10,000 tons. - The daily profit of imported cotton is 2,209 yuan/ton, down 9 yuan; the national commercial inventory of cotton is 4.6836 million tons, an increase of 1.753 million tons [2]. Downstream Situation - The inventory days of yarn are 26.33 days, an increase of 0.21 days; the inventory days of grey cloth are 32.34 days, an increase of 0.37 days. - The monthly output of cloth is 2.81 billion meters, an increase of 0.19 billion meters; the monthly output of yarn is 2.039 million tons, an increase of 38,000 tons. - The monthly export value of clothing and clothing accessories is 11,593,686 thousand US dollars, an increase of 590,205.57 thousand US dollars; the monthly export value of textile yarns, fabrics and products is 12,275,733 thousand US dollars, an increase of 1,731,408 thousand US dollars [2]. Option Market - The implied volatility of cotton at - the - money call options is 13.35%, down 0.17%; the implied volatility of cotton at - the - money put options is 13.35%, down 0.19%. - The 20 - day historical volatility of cotton is 14.02%, an increase of 0.25%; the 60 - day historical volatility of cotton is 9.12%, an increase of 0.09% [2]. Industry News - In December 2025, China's total cotton import volume was about 180,000 tons, a month - on - month increase of 60,000 tons and a year - on - year increase of 31%. From January to December 2025, China's cumulative cotton import volume was 1.07 million tons, a year - on - year decrease of 59.1%. - According to the USDA report, in the week ending January 8, 2025/26, the net export sales of US upland cotton increased by 339,700 bales, reaching the annual high, a 247% increase from the previous week and an 89% increase from the average of the previous four weeks. The export shipment volume of US upland cotton was 156,100 bales, a 1% increase from the previous week and an 8% increase from the average of the previous four weeks [2].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The domestic cotton market currently has relatively sufficient supply with accelerated national cotton inspection and increased port pick - up after quota issuance. Brazilian cotton is arriving in a concentrated manner, leading to an increase in inventory. As of the week ending January 8th, the inventory at major import cotton ports increased by 0.55% week - on - week, reaching a total of 39.95 million tons [2]. - Downstream textile enterprises have limited orders, lower than the previous year's level. Some fabric mills may have early holidays. However, the expected decline in cotton planting area in the new year provides some support to the cotton market. The January US Department of Agriculture supply - demand report is positive, and the short - term cotton price center is expected to continue to rise. Attention should be paid to macro and policy impacts [2]. 3. Summary by Directory 3.1 Futures Market - Zhengzhou cotton main contract closing price: 14,760 yuan/ton, up 135 yuan; cotton yarn main contract closing price: 20,765 yuan/ton, up 125 yuan [2]. - Cotton futures top 20 net positions: - 182,457 lots, down 11,680 lots; cotton yarn futures top 20 net positions: - 1,939 lots, down 89 lots [2]. - Cotton main contract positions: 837,159 lots, up 19,206 lots; cotton yarn main contract positions: 16,032 lots, down 153 lots [2]. - Cotton warehouse receipts: 8,410 lots, up 642 lots; cotton yarn warehouse receipts: 70 lots, up 10 lots [2]. 3.2 Spot Market - China Cotton Price Index (CCIndex:3128B): 15,783 yuan/ton; China Yarn Price Index (pure - cotton carded yarn 32S): 21,300 yuan/ton [2]. - China Imported Cotton Price Index (FCIndexM:1% tariff): 12,616 yuan/ton; China Imported Cotton Price Index (FCIndexM:sliding - scale duty): 13,735 yuan/ton [2]. - Imported cotton yarn price index (pure - cotton carded yarn 32S arrival price): 21,025 yuan/ton, up 4 yuan; imported cotton yarn price index (pure - cotton combed yarn 32S arrival price): 22,352 yuan/ton, up 4 yuan [2]. 3.3 Upstream Situation - National cotton sowing area: 2,838.3 thousand hectares, up 48.3 thousand hectares; national cotton output: 6.16 million tons, up 540,000 tons [2]. - Cotton - yarn price difference: 5,517 yuan/ton, up 74 yuan; national industrial inventory of cotton: 850,000 tons, up 65,000 tons [2]. 3.4 Industry Situation - Cotton import volume (monthly): 120,000 tons, up 30,000 tons; cotton yarn import volume (monthly): 150,000 tons, up 10,000 tons [2]. - Imported cotton profit: 2,048 yuan/ton, down 118 yuan; national commercial inventory of cotton: 4.6836 million tons, up 1.753 million tons [2]. 3.5 Downstream Situation - Yarn inventory days: 26.33 days, up 0.21 days; grey fabric inventory days: 32.34 days, up 0.37 days [2]. - Cloth output (monthly): 2.81 billion meters, up 0.19 billion meters; yarn output (monthly): 2.039 million tons, up 38,000 tons [2]. - Clothing and clothing accessories export amount (monthly): 11,593,686 thousand US dollars, up 590,205.57 thousand US dollars; textile yarn, fabric and products export amount (monthly): 12,275,733 thousand US dollars [2]. 3.6 Option Market - Cotton at - the - money call option implied volatility: 13.12%, down 0.23%; cotton at - the - money put option implied volatility: 13.12%, down 0.22% [2]. - Cotton 20 - day historical volatility: 13.34%, up 0.14%; cotton 60 - day historical volatility: 8.84%, up 0.05% [2]. 3.7 Industry News - In the 2025/26 US cotton January supply - demand outlook, compared with December, production and ending stocks decreased, while beginning stocks and imports remained unchanged. Production decreased by over 2% to 13.9 million bales, mainly due to the decline in the Delta region. The national average yield decreased by 8% to 856 pounds per acre. Ending stocks decreased by 7% to 4.2 million bales [2]. - ICE cotton futures rose on Monday. The US Department of Agriculture supply - demand report predicted stable cotton demand and lowered production estimates. The weaker US dollar and the rise in the broader commodity market further boosted cotton prices. The ICE March cotton futures contract closed up 0.50 cents, or 0.78%, at 64.91 cents per pound [2].

1. Report Industry Investment Rating - No information provided in the report. 2. Core Viewpoints of the Report - The domestic cotton market has relatively sufficient supply as the national cotton inspection volume has exceeded 6 million tons, and the ginning mills' lint processing is nearly finished. The orders for medium - and high - count yarns from downstream textile enterprises are stable, with most enterprises making just - in - time replenishments. Some regional warehouses have seen a slight decrease in inventory, and overall outbound shipments are good, but the national commercial inventory is expected to continue increasing. - There are growing expectations of a reduction in cotton planting area in Xinjiang in 2026, and the new cycle of target price subsidies provides a bottom - line support. In the short term, the upward driving force for cotton prices remains unchanged, and potential risks and correction opportunities should be monitored. [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - Zhengzhou cotton main contract closed at 14,740 yuan/ton, down 295 yuan; cotton yarn main contract closed at 20,795 yuan/ton, down 255 yuan. - The net position of the top 20 in cotton futures was - 162,774 lots, an increase of 27,643 lots; the net position of the top 20 in cotton yarn futures was - 2,298 lots, an increase of 203 lots. - The main contract positions of cotton were 862,891 lots, a decrease of 62,575 lots; the main contract positions of cotton yarn were 17,043 lots, a decrease of 906 lots. - Cotton warehouse receipts were 7,189 lots, an increase of 140 lots; cotton yarn warehouse receipts were 20 lots, unchanged. - The China Cotton Price Index (CCIndex:3128B) was 15,992 yuan/ton, an increase of 208 yuan; the China Yarn Price Index for pure - combed 32 - count cotton yarn was 21,300 yuan/ton, unchanged. [2] 3.2 Spot Market - The arrival price of imported cotton (FCIndexM:1% tariff) was 12,599 yuan/ton, down 35 yuan; the arrival price of imported pure - combed 32 - count cotton yarn was 21,059 yuan/ton, an increase of 101 yuan. - The arrival price of imported cotton (FCIndexM:sliding duty) was 13,729 yuan/ton, down 25 yuan; the arrival price of imported pure - combed 32 - count cotton yarn was 22,387 yuan/ton, an increase of 103 yuan. [2] 3.3 Upstream Situation - The national cotton sowing area was 2,838.3 thousand hectares, an increase of 48.3 thousand hectares; the national cotton output was 6.16 million tons, an increase of 0.54 million tons. [2] 3.4 Industry Situation - The cotton - yarn price difference was 5,308 yuan/ton, down 208 yuan; the national industrial inventory of cotton was 850,000 tons, an increase of 65,000 tons. - The monthly import volume of cotton was 120,000 tons, an increase of 30,000 tons; the monthly import volume of cotton yarn was 150,000 tons, an increase of 10,000 tons. - The profit of imported cotton was 2,263 yuan/ton, an increase of 233 yuan; the national commercial inventory of cotton was 4.6836 million tons, an increase of 1.753 million tons. [2] 3.5 Downstream Situation - The inventory days of yarn were 26.33 days, an increase of 0.21 days; the inventory days of grey cloth were 32.34 days, an increase of 0.37 days. - The monthly output of cloth was 2.81 billion meters, an increase of 0.19 billion meters; the monthly output of yarn was 2.039 million tons, an increase of 0.038 million tons. - The monthly export value of clothing and clothing accessories was 11,593,686 thousand US dollars, an increase of 590,205.57 thousand US dollars; the monthly export value of textile yarns, fabrics and products was 12,275,733 thousand US dollars, an increase of 1,017,314.08 thousand US dollars. [2] 3.6 Option Market - The implied volatility of at - the - money call options for cotton was 15.87%, an increase of 2.74%; the implied volatility of at - the - money put options for cotton was 15.87%, an increase of 2.73%. - The 20 - day historical volatility of cotton was 9.63%, an increase of 0.32%; the 60 - day historical volatility of cotton was 7.53%, an increase of 0.27%. [2] 3.7 Industry News - As of the week of January 4, the inventory of imported cotton in major ports increased by 0.53% week - on - week, with a total inventory of 397,300 tons. Among them, the inventory in Shandong's Qingdao, Jinan ports and surrounding warehouses was 334,000 tons, a year - on - year decrease of 21.48%, the inventory in Jiangsu's Zhangjiagang port and surrounding warehouses was about 34,100 tons, and the inventory in other ports was about 29,200 tons. This week, the arrivals were mainly Brazilian and Australian cotton, and the quotas have not been issued yet, with the market in a wait - and - see mode. - The Intercontinental Exchange (ICE) cotton futures fell on Wednesday, erasing earlier gains and closing lower due to the stronger US dollar. The ICE March cotton futures contract closed down 0.21 cents, or 0.32%, at 64.85 cents per pound. - Brazil's cotton sowing progress is smooth, significantly faster than the five - year average. As of the week of December 27, 2025, the planting rate of Brazil's 2025/26 cotton was 25.1%, compared with 16.9% the previous week and a five - year average of 15.6%. [2]

Report Summary 1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints - The current national cotton inspection volume in the domestic market has exceeded 6 million tons, with relatively sufficient supply. The ginning mills' cotton processing is nearing completion. Downstream textile enterprises have stable orders for medium - and high - count yarns, mostly making just - in - time purchases. Some regional warehouse inventories have slightly decreased, with overall good outbound shipments. It is expected that the national commercial inventory will still increase. However, in 2026, the expectation of a reduction in cotton planting area in Xinjiang is rising, and the new cycle expectation of target price subsidies provides a bottom support, so there is a continuous upward driving force for short - term cotton prices [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - Zhengzhou cotton main - contract closing price (daily, yuan/ton): 14,655, up 70; cotton futures top 20 net positions (lots): - 180,066, down 1,730; main - contract cotton positions (daily, lots): 889,861, up 29,136; cotton warehouse receipt quantity (daily, sheets): 6,118, up 406 - Cotton yarn main - contract closing price (daily, yuan/ton): 20,575, down 10; cotton yarn futures top 20 net positions (lots): - 2,248, down 130; main - contract cotton yarn positions (daily, lots): 18,643, down 947; cotton yarn warehouse receipt quantity (daily, sheets): 19, unchanged [2] 3.2 Spot Market - China Cotton Price Index (CCIndex:3128B, daily, yuan/ton): 15,615, up 30; China Yarn Price Index (pure - cotton carded yarn 32s, daily, yuan/ton): 21,200, unchanged - China Imported Cotton Price Index (FCIndexM: 1% tariff, daily, yuan/ton): 12,445, down 477; arrival price of imported cotton yarn price index (pure - cotton carded yarn 32s, daily, yuan/ton): 20,961, down 12; China Imported Cotton Price Index (FCIndexM: sliding duty, daily, yuan/ton): 13,633, down 297; arrival price of imported cotton yarn price index (pure - cotton combed yarn 32s, daily, yuan/ton): 22,288, up 70 [2] 3.3 Upstream Situation - National cotton sowing area (annual, thousand hectares): 2,838.3, up 48.3; national cotton output (annual, million tons): 6.16, up 0.54 [2] 3.4 Industry Situation - Cotton - yarn price difference (CY C32S - CC3128B, yuan/ton): 5,585, down 30; industrial inventory of cotton (national, monthly, million tons): 85, up 6.5 - Cotton import quantity (monthly value, monthly, million tons): 12, up 3; cotton yarn import quantity (monthly value, monthly, tons): 150,000, up 10,000 - Imported cotton profit (daily, yuan/ton): 1,982; commercial inventory of cotton (national, monthly, million tons): 468.36, up 175.3 [2] 3.5 Downstream Situation - Inventory days of yarn (monthly, days): 26.33, up 0.21; inventory days of grey fabric (monthly, days): 32.34, up 0.37 - Cloth output (monthly value, monthly, billion meters): 28.1, up 1.9; yarn output (monthly value, monthly, million tons): 203.9, up 3.8 - Export value of clothing and clothing accessories (monthly value, monthly, million US dollars): 11,593,686, up 590,205.57; export value of textile yarns, fabrics and products (monthly value, monthly, million US dollars): 12,275,733, up 1,017,314.08 [2] 3.6 Option Market - Implied volatility of at - the - money call options for cotton (%): 15.07, up 1.78; implied volatility of at - the - money put options for cotton (%): 15.04, up 1.78 - 20 - day historical volatility of cotton (%): 8.89, down 0.07; 60 - day historical volatility of cotton (%): 6.9, down 0.31 [2] 3.7 Industry News - As of December 23, 2025, according to the US Commodity Futures Trading Commission data, the non - commercial long positions of US cotton were 80,440 lots, a decrease of 2,078 lots from the previous week; the non - commercial short positions were 112,073 lots, a decrease of 9,045 lots from the previous week; the net short positions were 31,633 lots, a decrease of 6,967 lots from the previous week, with a slight reduction in net short positions - The sowing progress of Brazilian cotton is smooth, significantly faster than the five - year average. As of the week of December 27, 2025, the planting rate of Brazilian cotton in the 2025/26 season was 25.1%, compared with 16.9% in the previous week and a five - year average of 15.6% [2]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoint The short - term upward trend of cotton prices has paused due to the clear increase in cotton production in 2025. However, the expectation of a potential reduction in cotton planting areas in 2026 at home and abroad is rising, and the solidified cost of seed cotton acquisition provides strong support. The demand side is favorable, with sufficient orders from Xinjiang yarn mills, high - end yarns in short supply, higher textile operating rates than last year, and enterprises restocking as needed. The easing of Sino - US tariffs benefits textile exports, and the significant increase in cotton yarn imports in November also provides strong support for export demand [2]. 3. Summary by Relevant Catalogs Futures Market - The closing price of the main Zhengzhou cotton contract was 14,435 yuan/ton, a decrease of 100 yuan; the closing price of the main cotton yarn contract was 20,490 yuan/ton, a decrease of 95 yuan. - The net position of the top 20 in cotton futures was - 177,376 lots, an increase of 13,493 lots; the net position of the top 20 in cotton yarn futures was - 2268 lots, an increase of 219 lots. - The position volume of the main cotton contract was 868,630 lots, a decrease of 35,230 lots; the position volume of the main cotton yarn contract was 21,389 lots, a decrease of 1,813 lots. - The number of cotton warehouse receipts was 5,085, an increase of 232; the number of cotton yarn warehouse receipts was 19, unchanged [2]. Spot Market - The China Cotton Price Index (CCIndex:3128B) was 15,541 yuan/ton, an increase of 224 yuan; the China Yarn Price Index for pure - cotton carded 32 - count yarn was 21,140 yuan/ton, unchanged. - The China Imported Cotton Price Index (FCIndexM:1% tariff) was 12,932 yuan/ton, an increase of 34 yuan; the China Imported Cotton Price Index (FCIndexM:sliding - scale duty) was 13,928 yuan/ton, an increase of 12 yuan. - The arrival price of the imported cotton yarn price index for pure - cotton carded 32 - count yarn was 21,036 yuan/ton, a decrease of 5 yuan; the arrival price of the imported cotton yarn price index for pure - cotton combed 32 - count yarn was 22,285 yuan/ton, a decrease of 6 yuan [2]. Upstream Situation - The national cotton sowing area was 2,838.3 thousand hectares, an increase of 48.3 thousand hectares; the national cotton output was 6160 thousand tons, an increase of 540 thousand tons [2]. Industry Situation - The cotton - yarn price difference was 5,599 yuan/ton, a decrease of 224 yuan. - The industrial inventory of cotton nationwide was 850 thousand tons, an increase of 65 thousand tons; the monthly import volume of cotton was 120 thousand tons, an increase of 30 thousand tons; the monthly import volume of cotton yarn was 150,000 tons, an increase of 10,000 tons. - The profit from imported cotton was 1,613 yuan/ton, an increase of 212 yuan; the commercial inventory of cotton nationwide was 468360 thousand tons, an increase of 175300 thousand tons. - The inventory days of yarn were 26.33 days, an increase of 0.21 days; the inventory days of grey fabric were 32.34 days, an increase of 0.37 days [2]. Downstream Situation - The monthly output of cloth was 2.81 billion meters, an increase of 0.19 billion meters; the monthly output of yarn was 2.039 million tons, an increase of 0.038 million tons. - The monthly export value of clothing and clothing accessories was 11,593,686 thousand US dollars; the monthly export value of textile yarns, fabrics and products was 12,275,733,101,731.408 thousand US dollars [2]. Option Market - The implied volatility of the at - the - money call option for cotton was 12.57%, an increase of 3.13%; the implied volatility of the at - the - money put option for cotton was 12.54%, an increase of 3.07%. - The 20 - day historical volatility of cotton was 7.95%, an increase of 2.73%; the 60 - day historical volatility of cotton was 7.28%, an increase of 1.07% [2]. Industry News - In 2025, the national cotton sowing area was 2,979.2 thousand hectares, an increase of 140.9 thousand hectares or 5.0% compared to 2024. The sowing area in Xinjiang was 3,887.5 million mu, an increase of 215.6 million mu or 5.9%. - The national cotton unit - area yield was 2,229.0 kg/ha, an increase of 57.4 kg/ha or 2.6% compared to 2024. - The national cotton total output was 6.641 million tons, an increase of 477 thousand tons or 7.7% compared to 2024. - According to the USDA report, for the week ending December 11, 2025/26, the net export sales of US upland cotton increased by 304,700 bales, a 99% increase from the previous week and a 95% increase from the average of the previous four weeks. The export shipment volume was 134,400 bales, a 32% increase from the previous week and a 17% increase from the average of the previous four weeks [2].

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - On the domestic market, the national cotton inspection volume has exceeded 5.5 million tons, and the commercial inventory is expected to grow rapidly. In November, the cotton import volume increased slightly month - on - month, and the import port inventory is expected to maintain an upward trend. The downstream textile enterprises' peak - season procurement has ended, showing off - season characteristics, but the rise in external cotton prices will boost the cotton market in the short term [2] Group 3: Summary by Related Catalogs Futures Market - Zhengzhou cotton's main contract closing price is 14,180 yuan/ton, up 40 yuan; cotton yarn's main contract closing price is 20,260 yuan/ton, up 75 yuan. The net position of the top 20 in cotton futures is - 145,887 hands, down 6,080 hands; that of cotton yarn futures is - 1,332 hands, up 39 hands. The main contract position of cotton is 814,571 hands, up 15,586 hands; that of cotton yarn is 23,282 hands, up 20 hands. The cotton warehouse receipt quantity is 4,370 sheets, up 282 sheets; the cotton yarn warehouse receipt quantity is 22 sheets, up 8 sheets [2] Spot Market - The China Cotton Price Index CCIndex:3128B is 15,271 yuan/ton, up 58 yuan; the China Yarn Price Index for pure - cotton carded yarn 32 - count is 21,020 yuan/ton, up 30 yuan. The arrival price of imported pure - cotton carded yarn 32 - count is 21,087 yuan/ton, down 16 yuan; that of imported pure - cotton combed yarn 32 - count is 22,257 yuan/ton, down 16 yuan [2] Upstream Situation - The national cotton sowing area is 2,838.3 thousand hectares, up 48.3 thousand hectares; the national cotton output is 6.16 million tons, up 540,000 tons. The cotton - yarn price difference is 5,749 yuan/ton, down 28 yuan; the national industrial inventory of cotton is 850,000 tons, up 65,000 tons [2] Industry Situation - The monthly import quantity of cotton is 120,000 tons, up 30,000 tons; the monthly import quantity of cotton yarn is 150,000 tons, up 10,000 tons. The import cotton profit is 1,371 yuan/ton, up 78 yuan; the national commercial inventory of cotton is 4.6836 million tons, up 1.753 million tons [2] Downstream Situation - The inventory days of yarn are 26.33 days, up 0.21 days; the inventory days of grey cloth are 32.34 days, up 0.37 days. The monthly output of cloth is 2.81 billion meters, up 0.19 billion meters; the monthly output of yarn is 2.039 million tons, up 38,000 tons. The monthly export amount of clothing and clothing accessories is 11,593,686 thousand US dollars, and the monthly export amount of textile yarns, fabrics and products is 12,275,733,101,731.408 thousand US dollars [2] Option Market - The implied volatility of cotton at - the - money call options is 9.53%, up 0.2%; the implied volatility of cotton at - the - money put options is 9.53%, up 0.21%. The 20 - day historical volatility of cotton is 5.14%, up 0.08%; the 60 - day historical volatility of cotton is 6.22%, down 0.11% [2] Industry News - As of December 21, 2025, the cumulative notarized inspection of cotton in the 2025/26 season is 25,822,223 bales, totaling 5,828,808 tons, a year - on - year increase of 14.98%. The cumulative notarized inspection volume of Xinjiang cotton is 5,701,729 tons, a year - on - year increase of 16.43%. The ICE cotton futures rose on Tuesday, with investors covering short positions and the weakening US dollar providing support. The ICE March cotton futures contract closed up 0.40 cents, or 0.63%, at 64.01 cents per pound [2]

Report Summary 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - The domestic cotton market is expected to see an accelerated growth in commercial inventory as the national cotton inspection volume has exceeded 5.5 million tons, and the November cotton import volume increased slightly month - on - month. The import port inventory is expected to maintain an upward trend. On the demand side, after the peak - season procurement of downstream spinning mills ended, the off - season characteristics of spinning mills are emerging, and the market shipment speed is slow. Therefore, the cotton price is expected to fluctuate in the short term [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - Zhengzhou cotton main contract closing price (daily, yuan/ton): 14,070, up 55; cotton yarn main contract closing price (daily, yuan/ton): 20,110, up 60 - Cotton futures top 20 net positions (lots): - 138,546, down 1,226; cotton yarn futures top 20 net positions (lots): - 1,260, down 345 - Main contract positions: cotton (daily, lots): 785,062, up 23,519; cotton yarn (daily, lots): 23,294, up 473 - Warehouse receipt quantity: cotton (daily, sheets): 4,075, up 205; cotton yarn (daily, sheets): 9, unchanged - China Cotton Price Index: CCIndex: 3128B (daily, yuan/ton): 15,154; China Yarn Price Index: pure cotton carded yarn 32s (daily, yuan/ton): 20,990, up 60 - China Imported Cotton Price Index: FCIndexM: 1% tariff (daily, yuan/ton): 12,769, up 9; arrival price: Imported Cotton Yarn Price Index: pure cotton carded yarn 32s (daily, yuan/ton): 21,133, down 5 - China Imported Cotton Price Index: FCIndexM: sliding duty (daily, yuan/ton): 13,827, down 3; arrival price: Imported Cotton Yarn Price Index: pure cotton combed yarn 32s (daily, yuan/ton): 22,306, up 78 [2] 3.2 Spot Market - Data presented in the futures market section above also reflects the spot - related price indices [2] 3.3 Upstream Situation - National cotton sown area (annual, thousand hectares): 2,838.3, up 48.3; national cotton output (annual, million tons): 6.16, up 0.54 [2] 3.4 Industry Situation - Cotton - yarn price difference (CY C32S - CC3128B, yuan/ton): 5,836, up 51; industrial inventory: cotton: national (monthly, million tons): 85, up 6.5 - Cotton: import quantity: monthly value (monthly, million tons): 9, down 1; cotton yarn: import quantity: monthly value (monthly, tons): 140,000, up 10,000 - Imported cotton profit (daily, yuan/ton): 1,318, up 9; commercial inventory: cotton: national (monthly, million tons): 293.06, up 190.89 [2] 3.5 Downstream Situation - Inventory days: yarn (monthly, days): 26.12, up 1.27; inventory days: grey fabric (monthly, days): 31.97, up 0.85 - Cloth: output: monthly value (monthly, billion meters): 26.2, down 1.8; yarn: output: monthly value (monthly, million tons): 200.1, down 7.3 - Apparel and clothing accessories: export value: monthly value (monthly, million US dollars): 11,003,480.43, down 1,449,766.57; textile yarns, fabrics and products: export value: monthly value (monthly, million US dollars): 11,258,418.92, down 708,097.08 [2] 3.6 Option Market - Cotton at - the - money call option implied volatility (%): 9.14, down 0.5; cotton at - the - money put option implied volatility (%): 9.14, down 0.5 - Cotton 20 - day historical volatility (%): 5.26, down 0.16; cotton 60 - day historical volatility (%): 6.29, down 0.24 [2] 3.7 Industry News - According to Mysteel research, the national commercial inventory of cotton is increasing. As of December 19, 2025, the total commercial cotton inventory was 5.0473 million tons, a week - on - week increase of 255,000 tons (a 5.32% increase). Among them, the commercial cotton in Xinjiang was 4.351 million tons, a week - on - week increase of 189,600 tons (a 4.56% increase), and that in inland areas was 304,400 tons, a week - on - week increase of 63,800 tons (a 26.52% increase) - According to the USDA report, in the week ending November 27, the net export sales of US upland cotton in the 2025/26 season increased by 135,900 bales, a decrease of 8% from the previous week and 23% from the average of the previous four weeks. The export shipment volume of US upland cotton in the 2025/26 season was 122,100 bales, a 1% increase from the previous week and a 5% decrease from the average of the previous four weeks. The US cotton export contract volume decreased and the shipment volume increased slightly month - on - month [2]

1. Report's Industry Investment Rating - No relevant information provided 2. Core Viewpoints - In the domestic market, the cotton picking and delivery in Xinjiang are almost finished, and the ginning mills' lint processing volume is increasing. The national commercial inventory is growing. As of December 12, 2025, the total commercial cotton inventory was 470.23 million tons, a week-on-week increase of 23.73 million tons (a 5.31% increase). On the demand side, the peak - season procurement of downstream textile enterprises has ended, but the orders for medium - and high - count yarns are stable. Most enterprises choose to replenish inventory as needed. With potential long - term benefits, the short - term cotton price may continue to rise [2] 3. Summary by Relevant Catalog 3.1 Futures Market - Zhengzhou cotton's main contract closing price was 13,925 yuan/ton, a decrease of 20 yuan; cotton futures' top 20 net positions were - 148,999 lots, a decrease of 518 lots; the main contract's cotton position was 731,267 lots, an increase of 17,680 lots; the cotton warehouse receipt quantity was 3,482 lots, an increase of 283 lots. - The main contract closing price of cotton yarn was 20,085 yuan/ton, an increase of 30 yuan; the top 20 net positions of cotton yarn futures were - 838 lots, a decrease of 232 lots; the main contract's cotton yarn position was 22,447 lots, an increase of 359 lots; the cotton yarn warehouse receipt quantity was 9 lots, a decrease of 2 lots [2] 3.2 Spot Market - The China Cotton Price Index (CCIndex:3128B) was 15,144 yuan/ton, an increase of 14 yuan; the China Imported Cotton Price Index (FCIndexM:1% tariff) was 12,863 yuan/ton, an increase of 17 yuan; the China Imported Cotton Price Index (FCIndexM: sliding - scale tariff) was 13,892 yuan/ton, an increase of 19 yuan. - The China Yarn Price Index for pure - cotton carded yarn 32s was 20,830 yuan/ton, unchanged; the arrival price of the imported cotton yarn price index for pure - cotton carded yarn 32s was 21,065 yuan/ton, an increase of 4 yuan; the arrival price of the imported cotton yarn price index for pure - cotton combed yarn 32s was 22,237 yuan/ton, an increase of 5 yuan [2] 3.3 Upstream Situation - The national cotton sowing area was 2,838.3 thousand hectares, an increase of 48.3 thousand hectares; the national cotton output was 6.16 million tons, an increase of 0.54 million tons [2] 3.4 Industry Situation - The cotton - yarn price difference was 5,686 yuan/ton, a decrease of 14 yuan; the national industrial cotton inventory was 850,000 tons, an increase of 65,000 tons; the monthly import volume of cotton was 90,000 tons, a decrease of 10,000 tons; the monthly import volume of cotton yarn was 140,000 tons, an increase of 10,000 tons; the profit of imported cotton was 1,238 yuan/ton, an increase of 51 yuan; the national commercial cotton inventory was 2.9306 million tons, an increase of 1.9089 million tons [2] 3.5 Downstream Situation - The inventory days of yarn were 26.12 days, an increase of 1.27 days; the inventory days of grey fabric were 31.97 days, an increase of 0.85 days; the monthly output of cloth was 2.62 billion meters, a decrease of 0.18 billion meters; the monthly output of yarn was 2.001 million tons, a decrease of 0.073 million tons; the monthly export value of clothing and clothing accessories was 110,034,804,300 US dollars, a decrease of 14,497,665,700 US dollars; the monthly export value of textile yarns, fabrics and products was 112,584,189,200 US dollars, a decrease of 7,080,970,800 US dollars [2] 3.6 Option Market - The implied volatility of cotton at - the - money call options was 2.09%, a decrease of 11.87%; the implied volatility of cotton at - the - money put options was 13.96%, an increase of 2.38%; the 20 - day historical volatility of cotton was 6.77%, an increase of 0.07%; the 60 - day historical volatility of cotton was 7.01%, an increase of 0.05% [2] 3.7 Industry News - The Brazilian Cotton Growers Association (Abrapa) reported that Brazil's cotton planting area in 2026 is estimated to be 2.05 million hectares, 5% lower than in 2025, and the output is estimated to be 2.83 million tons, a 10% year - on - year decrease. - The Intercontinental Exchange (ICE) cotton futures closed lower on Tuesday due to weak export sales and expected future supply increases. The ICE March cotton futures contract fell 0.84 cents, or 1.31%, to settle at 63.10 cents per pound [2]