1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report The report indicates that the demand for cotton has not changed significantly, and cotton prices are expected to be mainly volatile. In the international market, US cotton is expected to move in a volatile manner, while in the domestic market, short - term Zhengzhou cotton is expected to show a slightly stronger volatile trend [1][8][25]. 3. Summary by Relevant Catalogs 3.1 International Market Analysis - **US Cotton Market**: There are no obvious changes in the macro - aspect. Fundamentally, the current good - to - excellent rate is at a relatively high level in the same period over the years, so the US cotton trend is expected to be mainly volatile [8]. - **US Cotton Growth**: As of August 17, the budding rate of US cotton was 97%, the boll - setting rate was 73%, the boll - opening rate was 13%, and the good - to - excellent rate was 55%. The growth progress was relatively slow, but the good - to - excellent rate was higher than the historical average [8]. - **US Cotton Sales**: As of the week ending August 14, the weekly signing volume of 2025/26 US upland cotton was 24,000 tons, a week - on - week decrease of 56%; the weekly shipment volume was 28,000 tons, a week - on - week decrease of 14% [8]. - **CFTC Position**: As of August 15, the number of unsold contracts of sellers on the ON - CALL 2512 contract increased by 525 to 21,948, and the total number of unsold contracts of sellers in the 25/26 season increased by 876 to 44,381, equivalent to 1.01 million tons [8]. - **Brazil**: According to CONAB's August report, the total cotton output in Brazil in the 2024/25 season is expected to be 3.935 million tons, a decrease of 3,000 tons from the previous month [8]. - **India**: From August 14 to 20, the weekly rainfall in the main cotton - producing areas in India was 108.2 mm, higher than the normal level and the same period last year. The cumulative rainfall during the rainy season was about 11% higher [8]. - **Global Situation**: According to the latest USDA August forecast, the global cotton output in August was 25.39 million tons, a month - on - month decrease of 391,000 tons; the total consumption decreased by 30,000 tons to 25.68 million tons; the ending inventory decreased by 742,000 tons to 16.09 million tons [8]. 3.2 Domestic Market Analysis - **Supply Side**: As of mid - August, the national commercial cotton inventory in China was 1.8202 million tons, at a low level in the same period over the years. The sales volume has increased, and the weekly inventory shows a downward trend [25]. - **Demand Side**: It is currently the off - season for market consumption. As of mid - August, the industrial inventory of cotton in cotton textile enterprises was 924,200 tons, and the yarn and fabric inventories were 27.23 days and 35.14 days respectively. The weekly data shows that the operating rate of spinning mills has increased slightly [25]. - **Comprehensive Outlook**: In the short term, the impact of the macro - level is expected to weaken. Fundamentally, the cotton supply is still relatively tight, and the demand is expected to improve in August. Short - term Zhengzhou cotton is expected to show a slightly stronger volatile trend [25]. 3.3 Option Trading Strategy - **Volatility Judgment**: The 120 - day HV was 10.2496 yesterday, and the volatility increased slightly compared with the previous day [39]. - **Option Strategy Recommendation**: Yesterday, the position PCR of the main contract of Zhengzhou cotton was 0.7867, and the trading volume PCR was 0.6430. Today, the trading volumes of both call and put options increased. The recommendation is to sell put options [39]. 3.4 Futures Trading Strategy - **Trading Logic**: The short - term impact of tariffs may weaken. Fundamentally, the cotton supply is tight, and the demand is expected to improve in August. The short - term market is expected to be slightly stronger but with limited upward space [41]. - **Specific Strategies**: Unilateral trading: It is expected that the US cotton will move in a volatile manner, and Zhengzhou cotton is expected to show a slightly stronger volatile trend. Arbitrage: Stay on the sidelines [43]. 3.5 Weekly Data Tracking - **Mid - end Situation**: Information on the operating load of pure - cotton yarn mills, full - cotton fabric load, yarn inventory days, and fabric inventory days is presented through historical data charts [50]. - **Cotton Inventory**: Data on national commercial cotton inventory, industrial inventory of spinning mills, and reserve inventory over the years are provided [52]. - **Spot - Futures Basis**: Information on the basis of cotton in January, May, and September, as well as the basis of US cotton and the basis between cotton yarn C32S spot and the active contract of Zhengzhou cotton yarn is presented [55].

Report Information - Report Title: Cotton (Yarn) Market Weekly Report - Cotton Fluctuates, Awaits Demand Improvement [2] - Report Date: August 22, 2025 [2] - Researcher: Zhang Xin [3] - Researcher Qualification: Futures Practitioner Qualification Number F03109641, Futures Investment Consulting Practitioner Certificate Z0018457 [3] Report Industry Investment Rating - Not provided in the report Core Viewpoints - This week, the main contract of Zhengzhou cotton 2601 closed lower with a weekly decline of about 0.64%, and the cotton yarn futures 2511 contract fell 0.62% [7][20] - Domestically, cotton is in a de - stocking state, supply is tight before the new cotton is listed, and spot prices are firm. Although inland textile enterprises have no profit, there are expectations for the "Golden September and Silver October" demand peak season, and the operating rate has slightly increased. The overall cotton planting area in China increased in 2025, and attention should be paid to the impact of weather on new crop growth [7] - In general, tight supply of old crops and expected demand improvement are expected to boost the short - term cotton trend, while the medium - term trend is suppressed by the expected increase in new cotton production. It is recommended to go long on dips in the short - term and control risks [7] Summary by Directory 1. Weekly Highlights Summary - **Market Analysis**: Zhengzhou cotton main 2601 contract and cotton yarn futures 2511 contract both declined this week [7][20] - **Market Outlook**: Tight supply of old crops, expected demand improvement, new crop growth affected by weather. Short - term trend positive, medium - term suppressed by new crop increase [7] - **Future Trading Tips**: Pay attention to foreign cotton prices, macro factors, trade policies, and weather factors [7] 2. Futures and Spot Market - **US Cotton Market**: The price of the December US cotton contract fell this week with a weekly decline of about 0.19%. As of August 12, 2025, non - commercial long positions decreased by 2.66% month - on - month, non - commercial short positions increased by 1.04% month - on - month, and the net position decreased by 8.35% month - on - month [10] - **Foreign Cotton Spot Market**: The US current market - year cotton export sales increased by 105,400 bales, and shipments were 123,300 bales. New sales were 138,800 bales, lower than last week. As of August 18, 2025, the Cotlook:A index was 79.15 cents per pound, down 0.31% month - on - month [15] - **Futures Market**: Zhengzhou cotton main 2601 contract and cotton yarn futures 2511 contract declined. As of this week, the net position of the top 20 in cotton futures was - 48,516, and in cotton yarn futures was - 380 lots. Cotton futures warehouse receipts were 7,198 lots, and cotton yarn futures warehouse receipts were 64 lots [20][26][33] - **Futures and Spot Price Difference**: The price difference between Zhengzhou cotton 1 - 5 contracts was 40 yuan/ton, and the price difference between cotton 3128B and cotton yarn C32S was 5,457 yuan/ton [35] - **Spot Market**: As of August 22, 2025, the spot price index of cotton 3128B was 15,243 yuan/ton, and the Chinese cotton yarn spot C32S index price was 20,700 yuan/ton. As of August 19, 2025, CY index:OEC10s was 14,800 yuan/ton [41][52] - **Futures Basis**: The basis between the cotton 3128B price index and the Zhengzhou cotton 2601 contract was + 1,213 yuan/ton, and the basis between the cotton yarn C32S spot price and the cotton yarn futures 2511 contract was 640 yuan/ton [47] - **Imported Cotton (Yarn) Cost**: As of August 19, 2025, the 1% quota port pick - up price of imported cotton increased by 0.38% month - on - month, and the sliding - scale duty port pick - up price increased by 0.20% month - on - month. The port pick - up prices of imported cotton yarn C32S, C21S, and JC32S all declined slightly [59] - **Imported Cotton Cost - Profit**: As of August 19, 2025, the cost - profit of imported cotton sliding - scale duty port pick - up price (M) was 894 yuan/ton, and that of 1% quota port pick - up price was 1,650 yuan/ton [63] 3. Industry Situation - **Supply Side - Commercial Inventory**: As of July 31, 2025, the national commercial cotton inventory was 2.1898 million tons, down 22.62% month - on - month, and the industrial cotton inventory was 898,400 tons, up 1.85% month - on - month [67] - **Supply Side - Import Volume**: In July 2025, China's cotton import volume was 50,000 tons, a year - on - year decrease of 73.2%. From January to July, the cumulative cotton import volume was 520,000 tons, a year - on - year decrease of 74.2%. In July 2025, the imported cotton yarn volume was 110,000 tons, and from January to June, the cumulative imported cotton yarn volume was 780,000 tons [71] - **Mid - end Industry - Demand Side**: As of July 31, 2025, the yarn inventory days were 27.67 days, down 2.43% month - on - month, and the grey cloth inventory days were 36.14 days, down 2.95% month - on - month [75] - **Terminal Consumption - Demand Side - Export**: As of July 31, 2025, the export value of textile yarns, fabrics and products was 1.1604009 billion US dollars, down 3.69% month - on - month, and the export value of clothing and accessories was 1.5161759 billion US dollars, down 0.69% month - on - month [79] - **Terminal Consumption - Demand Side - Domestic Retail**: As of June 30, 2025, the cumulative retail sales of clothing were 534.13 billion yuan, up 20.42% month - on - month, and the cumulative year - on - year was 2.5%, down 3.85% month - on - month [83] 4. Options and Stock Market - Related Market - **Options Market**: Implied volatility of at - the - money cotton options this week [84] - **Stock Market - Xinjiang Nongkai Agriculture Development Co., Ltd.**: P/E ratio trend [89]

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The market has significant differences in opinion regarding whether the peak seasons of "Golden September and Silver October" will be prosperous. The 14,000 mark for Zhengzhou cotton is crucial. If it stabilizes above this level, there is potential for further upward movement; otherwise, there may be more room for decline [4]. - The overall situation of the cotton market is complex, with various factors presenting both positive and negative impacts [4][5]. 3. Summary by Directory 3.1 Previous Day's Review No content related to the previous day's review is provided. 3.2 Daily Hints - **Fundamentals**: Different institutions have different forecasts for the 2025/26 cotton season. ICAC predicts a production of 25.9 million tons and consumption of 25.6 million tons; USDA forecasts production of 25.392 million tons, consumption of 25.688 million tons, and an ending inventory of 16.093 million tons; the Ministry of Agriculture in China estimates production of 6.25 million tons, imports of 1.4 million tons, consumption of 7.4 million tons, and an ending inventory of 8.23 million tons. In July, textile and clothing exports were $26.77 billion, a year - on - year decrease of 0.1%. Cotton imports were 50,000 tons, a year - on - year decrease of 73.2%, and cotton yarn imports were 110,000 tons, a year - on - year increase of 15.38% [4]. - **Basis**: The national average price of spot 3128b cotton is 15,243 yuan, with a basis of 1,143 yuan (for the 01 contract), indicating a premium over futures [4]. - **Inventory**: The estimated ending inventory for the 2025/26 season by the Chinese Ministry of Agriculture in July is 8.23 million tons, which is a bearish factor [4]. - **Market Chart**: The 20 - day moving average is upward, and the K - line is above the 20 - day moving average, which is a bullish signal [4]. - **Main Position**: The position is bullish, but the net long position is decreasing, and the main trend is unclear [4]. - **Expectations**: Zhengzhou cotton fell rapidly during the night session, breaking below the 14,000 mark. The 14,000 level is critical for future price movements [4]. 3.3 Today's Focus No content related to today's focus is provided. 3.4 Fundamental Data - **USDA Forecasts**: There are differences in production, consumption, imports, and ending inventories among different countries and regions in the 2024/25 and 2025/26 seasons. For example, China's production in August 2025/26 is forecasted to be 6.858 million tons, consumption is 8.165 million tons, imports are 1.154 million tons, and ending inventory is 7.625 million tons [10][11]. - **ICAC Global Balance Sheet**: In the 2025/26 season, global production is 25.9 million tons, consumption is 25.6 million tons, ending inventory is 17.1 million tons, and global trade volume is 9.7 million tons. The price forecast for the Cotlook A Index is 57 - 94 cents per pound [12]. - **Ministry of Agriculture Data**: In the 2025/26 season, China's production is 6.25 million tons, imports are 1.4 million tons, consumption is 7.4 million tons, and ending inventory is 8.23 million tons. The domestic average price of 3128B cotton is expected to be between 15,000 - 17,000 yuan per ton, and the Cotlook A Index is expected to be between 75 - 100 cents per pound [14]. 3.5 Position Data No content related to position data is provided.

Report Information - Report Title: Cotton Weekly Report (8.11 - 8.15) - Author: Wang Mingwei from Dayue Futures Investment Consulting Department - Contact: 0575 - 85226759 [1] Investment Rating - No investment rating provided in the report Core Views - This week, cotton prices rebounded, with the 01 contract reclaiming the 14,000 mark. The upcoming "Golden September and Silver October" consumption peak has strengthened market expectations. Unless initial orders are scarce, short - term trends are likely to be strong, though a rise - then - fall scenario is possible [4]. - The USDA's August report significantly lowered cotton production, which is bullish. The Zhengzhou Cotton 01 contract should be watched for its battle at the 14,000 mark. If it stabilizes above 14,000, there is potential for further upward movement; otherwise, if it drops below 14,000, the subsequent trend will be weak [5]. - Bullish factors include reduced previous Sino - US tariffs and lower commercial inventories year - on - year. Bearish factors are the postponed trade negotiations, high current export tariffs to the US, the consumption off - season, a general decline in foreign trade orders, increased inventories, and the impending large - scale listing of new cotton [6]. Summary by Catalog 1. Previous Day Review - This week, cotton prices rebounded, with the 01 contract back above 14,000. The ICAC's August report shows 25/26 annual production of 25.9 million tons and consumption of 25.6 million tons. The USDA's August report indicates 25/26 annual production of 25.392 million tons, consumption of 25.688 million tons, and an ending inventory of 16.093 million tons. In July, textile and clothing exports were $26.77 billion, a 0.1% year - on - year decrease. In June, China imported 30,000 tons of cotton, an 82.1% year - on - year decrease, and 110,000 tons of cotton yarn, a 0.1% year - on - year increase. The Ministry of Agriculture's July 25/26 forecast shows production of 6.25 million tons, imports of 1.4 million tons, consumption of 7.4 million tons, and an ending inventory of 8.23 million tons [4]. 2. Daily Hints - The USDA's August report significantly lowered cotton production, which is bullish. The Zhengzhou Cotton 01 contract should be watched for its battle at the 14,000 mark. If it stabilizes above 14,000, there is potential for further upward movement; otherwise, if it drops below 14,000, the subsequent trend will be weak [5]. 3. Today's Focus - Bullish factors: Reduced previous Sino - US tariffs and lower commercial inventories year - on - year. Bearish factors: Postponed trade negotiations, high current export tariffs to the US, the consumption off - season, a general decline in foreign trade orders, increased inventories, and the impending large - scale listing of new cotton [6]. 4. Fundamental Data - **USDA Global Cotton Supply - Demand Forecast**: For 2024/25, production in China decreased by 10.9 tons year - on - year, India decreased by 10.8 tons, Brazil increased by 27.3 tons, etc. Consumption in China decreased by 10.9 tons year - on - year, Pakistan increased by 2.2 tons, etc. [11]. - **ICAC Global Cotton Supply - Demand Balance Sheet**: In the 2025/26 year, global production is 25.9 million tons, consumption is 25.6 million tons, ending inventory is 17.1 million tons, and global trade volume is 9.7 million tons. The price forecast for the Cotlook A Index is 57 - 94 cents per pound [13]. - **Ministry of Agriculture's Forecast**: For 2025/26, production is 6.25 million tons, imports are 1.4 million tons, consumption is 7.4 million tons, and ending inventory is 8.23 million tons [15]. 5. Position Data - No position data provided in the report

Core Viewpoint - Cotton futures prices continued to fluctuate, with the main contract closing at 13,880 yuan/ton, an increase of 80 yuan/ton or 0.58% from the previous trading day [1] Fundamental Summary - From August 9-11, the basis for spot Australian cotton LM1-5/32 (strength 29-30 GPT) was approximately 3.5-4.5 cents/pound, while LM1-3/16 (strength 30 GPT) had a basis of 6-6.75 cents/pound. The basis for bonded Australian cotton M1-5/32 (strength 28/29) at major ports in China was generally around 13.5-15 cents/pound [2] - In the first week of August, Brazil exported 17,242.63 tons of cotton, with an average daily export volume of 2,873.77 tons, a decrease of 43% compared to the average daily export volume for the entire month of August 2024. The total export volume for August 2024 was 111,764.74 tons, with the decline attributed to reduced market demand and price competition [2] - As of the week ending August 8, the spinning mill operating rate was 65.7%, down 0.9 percentage points week-on-week and down 3.4 percentage points year-on-year. The weaving mill operating rate was 37%, down 0.1 percentage points week-on-week and down 1.9 percentage points year-on-year. Weekly commercial cotton inventory was 2.01 million tons, a decrease of 150,000 tons week-on-week and flat year-on-year [2] Institutional Perspectives - Zhongyuan Futures noted that the new cotton growth is generally normal, with recent weather conditions having limited impact on cotton growth. The market has strong expectations for a bumper crop in 2025, which is suppressing the prices of distant contracts. Demand remains under pressure, with low operating rates in textile enterprises, high grey fabric inventory, insufficient export orders, and no significant improvement in domestic consumption. Although some textile companies expect a temporary recovery in late August, overall market confidence is lacking. The current cotton prices face pressure from above and support from below, with the market lacking core drivers and awaiting further news [3] - Shenwan Hongyuan Futures indicated that cotton prices are currently maintaining a range-bound trend. On the supply side, cotton supply is relatively tight, and the spot basis remains firm. Future attention is needed on whether additional sliding tax quota will be issued. On the demand side, there are marginal improvements in downstream industries, but overall confidence remains low. Macroeconomic factors suggest that short-term tariff impacts may weaken, and attention should be paid to policies against "involution" affecting bulk commodities. Overall, Zheng cotton may experience short-term fluctuations with potential upward movement, but the upper space is expected to be limited, and medium-term pressure is anticipated from the new cotton harvest [3]

1. Report Industry Investment Rating - No information provided in the report 2. Core View of the Report - This week, the main contract of Zhengzhou cotton fluctuated and adjusted, with a weekly increase of about 0.11%, while the cotton yarn futures contract declined by 0.78%. Domestically, cotton is in a destocking state, with a tight supply before the new cotton goes on the market, and the basis is firm. On the demand side, the textile industry shows characteristics of the off - season, the overall operating rate continues to decline, and enterprises purchase raw materials mainly for rigid demand. In 2025, the overall planting area of Chinese cotton has increased, and attention should be paid to the impact of weather on new crop growth. Overall, due to the weak downstream demand and market expectations for quotas, it is expected to fluctuate. Attention should be paid to the USDA monthly supply - demand report [7]. 3. Summary by Relevant Catalogs 3.1 Weekly Highlights Summary - **Market Analysis**: The main contract of Zhengzhou cotton 2601 fluctuated and adjusted this week, with a weekly increase of about 0.11%, and the cotton yarn futures 2511 contract declined by 0.78% [7]. - **Market Outlook**: U.S. cotton futures prices are weak. Domestically, cotton is destocking, supply is tight before new cotton is available, and the basis is strong. The textile industry is in the off - season, with reduced profits for inland spinning enterprises, a continuous decline in the overall operating rate, and enterprises purchasing raw materials mainly for rigid demand. The overall planting area of Chinese cotton in 2025 has increased, and attention should be paid to the impact of high temperatures in Xinjiang on new crop growth. It is expected to fluctuate, and attention should be paid to the USDA monthly supply - demand report [7]. - **Future Trading Tips**: Pay attention to changes in foreign cotton prices, macro - factors, trade policies, and weather factors [7]. 3.2 Futures and Spot Market - **U.S. Cotton Market**: The price of the U.S. cotton December contract declined this week, with a weekly decline of about 0.45%. As of July 29, 2025, the non - commercial long positions of ICE No. 2 cotton increased by 1.09% month - on - month, the non - commercial short positions increased by 0.33% month - on - month, and the CFTC net position increased by 1.47% month - on - month [10]. - **U.S. Cotton Export**: As of the week ending July 31, U.S. cotton export shipments were 182,300 bales, with the total export shipments reaching 11,191,200 bales, a 1% increase from the previous year. The net increase in cotton export sales for the week was 92,100 bales. As of August 5, 2025, the Cotlook:A index was reported at 77.75 cents per pound, a 0.32% increase month - on - month [15]. - **Futures Market**: The main contract of Zhengzhou cotton 2601 fluctuated and adjusted this week, with a weekly increase of about 0.11%, and the cotton yarn futures 2511 contract declined by 0.78%. As of this week, the net position of the top 20 in cotton futures was - 20,574, and that in cotton yarn futures was 119 lots. The number of cotton futures warehouse receipts was 8,252, and that of cotton yarn futures was 83 [23][29][34]. - **Spot Market**: As of August 8, 2025, the spot price index of cotton 3128B was 15,178 yuan per ton, and the spot price index of Chinese cotton yarn C32S was 20,620 yuan per ton. As of August 7, 2025, the CY index:OEC10s (air - jet yarn) was 14,760 yuan per ton [44][54]. - **Imported Cotton (Yarn) Cost**: As of August 6, 2025, the import cotton price index (FC Index):M:1% quota port pick - up price was reported at 13,480 yuan per ton, a 0.44% increase month - on - month; the import cotton price index (FC Index):M:sliding - scale duty port pick - up price was reported at 14,282 yuan per ton, a 0.34% increase month - on - month. The import cotton yarn price index (FCY Index):port pick - up price:C32S was reported at 21,206 yuan per ton, with no month - on - month change [58]. - **Imported Cotton Cost - Profit**: As of August 6, 2025, the cost - profit of imported cotton sliding - scale duty port pick - up price (M) was 896 yuan per ton; the cost - profit of imported cotton quota port pick - up price (1%) was 1,698 yuan per ton [61]. 3.3 Industry Situation - **Supply Side - Inventory**: As of June, the total national commercial cotton inventory was 2.8298 million tons, a month - on - month decline of 18.18%. As of June 15, the in - stock industrial cotton inventory of textile enterprises was 930,100 tons, a month - on - month decrease of 1.17% [65]. - **Supply Side - Import Volume**: In June 2025, China imported about 30,000 tons of cotton, a year - on - year decrease of about 82.1%. From January to June, the total imported cotton was 460,000 tons, a year - on - year decrease of 74.3%. In June 2025, the import volume of cotton yarn was 110,000 tons, and from January to June, the cumulative imported cotton yarn was 670,000 tons [69]. - **Mid - end Industry - Demand**: As of June 15, the yarn inventory of textile enterprises was 23.864 days, a month - on - month increase of 6.8%, and the grey fabric inventory was 35.46 days, a month - on - month increase of 7.81% [73]. - **Terminal Consumption - Export**: As of June 30, 2025, the monthly export value of textile yarns, fabrics, and products was reported at 1,204,820,700 US dollars, a month - on - month decline of 4.62%. The monthly export value of clothing and clothing accessories was reported at 1,526,671,400 US dollars, a month - on - month increase of 12.44% [77]. - **Downstream Terminal Consumption - Domestic Retail**: As of June 30, 2025, the cumulative retail value of clothing, shoes, hats, needles, and textiles was reported at 742.59 billion yuan, a month - on - month increase of 20.98%. The cumulative year - on - year growth rate was reported at 3.1%, a month - on - month decline of 6.06% [81]. 3.4 Options and Stock Market - Related Markets - **Options Market**: Information on the implied volatility of at - the - money options in the cotton options market this week was provided [82]. - **Stock Market - Xinong Development**: Information on the price - earnings ratio trend of Xinong Development was provided [88].

Group 1: Main Views - This month, cotton prices first rose and then fell. The July USDA report on U.S. cotton was bearish, with increased planting area, slightly decreased yield per unit, and slightly increased ending stocks. The Fed maintained the benchmark interest rate, and the U.S. dollar index continued to rise, suppressing U.S. commodities. The weather in U.S. cotton-growing areas was favorable, and the export of U.S. cotton was weak. In China, the commercial cotton inventory was decreasing, imports were low, downstream demand was in the off - season, and the extension of Sino - U.S. tariff measures was negative for cotton textile exports. The new cotton in Xinjiang was in the full - bloom stage, and the high - temperature situation had eased [6]. - The strategy is to note that the good weather in U.S. cotton - growing areas and the extension of Sino - U.S. tariffs have pressured U.S. cotton to fluctuate weakly. In China, low imports and continuous consumption of commercial inventory have led to a relatively fast de - stocking process, but downstream demand is still weak, and Sino - U.S. tariffs continue to suppress terminal exports. With an increase in the planting area of new - season cotton and the alleviation of high - temperature in Xinjiang, Zhengzhou cotton first rose and then fell. Pay attention to weather changes in growing areas, and Zhengzhou cotton will continue to bottom out at a low level [6]. Group 2: Market Review - As of July 31, the ICE U.S. cotton 12 contract closed at 67.22 cents per pound, down 0.82 points from the previous month's close, with a monthly decline of 1.21%. The CF2509 contract closed at 13,650 yuan per ton, down 90 points from the opening, with a monthly decline of 0.66% [8]. Group 3: Fundamental Analysis External Market - U.S. Cotton - **Balance Sheet**: In 2025/26, the planting area is expected to be 10.12 million acres, a month - on - month increase of 250,000 acres; the harvest area is expected to be 8.66 million acres, an increase of 470,000 acres; the yield per unit is expected to be 809 pounds per acre, a decrease of 11 pounds per acre; the output is expected to be 14.6 million bales, an increase of 600,000 bales; the total supply is expected to be 18.71 million bales, an increase of 300,000 bales; the total consumption is expected to be 14.2 million bales, unchanged; the ending stocks are expected to be 4.6 million bales, an increase of 300,000 bales [15][16]. - **Goodness - to - Grade Ratio**: As of the week of July 27, the goodness - to - grade ratio of U.S. cotton was 55%, lower than the previous week but higher than the same period last year; the boll - setting rate was 44%, higher than the previous week but lower than the same period last year and the five - year average; the squaring rate was 80%, higher than the previous week but lower than the same period last year and the five - year average [20]. - **Exports**: As of July 24, the net export sales of U.S. upland cotton in the 2024/2025 season were 39,000 bales, compared with - 33,000 bales in the previous week; the net sales in the 2025/2026 season were 72,000 bales, compared with 133,000 bales in the previous week. The cumulative export sales were 1.0088 million bales, accounting for 93.31% of the July USDA report [24]. Domestic Market - **Spinning Mills' Operation**: As of July 31, the operating load of mainstream spinning mills was 66.6%, a month - on - month decrease of 1.48%. The operating rate continued to decline, downstream orders did not change significantly, and the sales of spinning mills were slow. The operating rate of inland spinning mills was about 50%, while that in Xinjiang remained stable [28]. - **Spinning Mills' Inventory**: As of July 31, the cotton inventory of mainstream spinning mills in terms of days was 27.80 days, and the yarn inventory of major spinning mills was 31.7 days, a month - on - month increase of 0.32% [31]. - **Cotton Inventory**: As of July 25, the total commercial cotton inventory was 2.3056 million tons, a week - on - week decrease of 151,900 tons (a decrease of 6.18%). As of July 31, the inventory of imported cotton at major ports decreased by 5.07% week - on - week, with a total inventory of 335,400 tons [34].

Report Summary 1. Report Industry Investment Rating No information regarding the industry investment rating is provided in the report. 2. Core Viewpoints - This week, cotton prices turned and accelerated their decline. The main reasons were the less - than - expected Sino - US negotiations and the upcoming new cotton harvest, with downstream buyers not willing to accept price increases [4]. - The Sino - US trade negotiations were postponed, which was below market expectations, leading to a general weakening of commodities. The main contract of Zhengzhou cotton is about to shift to 01. Recently, the decline of 09 was greater than that of 01, and 01 started to trade at a premium to 09. Currently in the consumption off - season, and the market outlook for the "Golden September and Silver October" is unclear. The 01 contract should be treated with a weak and volatile mindset [4]. - There are both positive and negative factors. Positive factors include a reduction in previous Sino - US reciprocal tariffs and a year - on - year decline in commercial inventories. Negative factors are the postponement of trade negotiations, the consumption off - season, a general decline in foreign trade orders, increased inventories, and the upcoming large - scale listing of new cotton [5]. 3. Summary of Each Section According to the Table of Contents 3.1 Previous Day's Review - This week, cotton prices dropped rapidly. The ICAC July report showed that the global cotton production in the 25/26 season is expected to be 2590 tons, and consumption is 2560 tons. The USDA July report indicated that the 25/26 season production is 2578.3 tons, consumption is 2571.8 tons, and the ending inventory is 1683.5 tons. In June, China's textile and clothing exports were $27.31 billion, a year - on - year decrease of 0.1%. China imported 30,000 tons of cotton in June, a year - on - year decrease of 82.1%, and imported 110,000 tons of cotton yarn, a year - on - year increase of 0.1%. The Ministry of Agriculture's July forecast for the 25/26 season is a production of 6.25 million tons, imports of 1.4 million tons, consumption of 7.4 million tons, and an ending inventory of 8.23 million tons [4]. 3.2 Daily Tips No information related to daily tips is provided in the report. 3.3 Today's Focus No information related to today's focus is provided in the report. 3.4 Fundamental Data - **Global Supply and Demand**: According to the USDA July report, the global cotton production in the 25/26 season is 2578.3 tons, consumption is 2571.8 tons, and the ending inventory is 1683.5 tons. The ICAC report shows that the global cotton production in the 25/26 season is 2590 tons, and consumption is 2560 tons. The Ministry of Agriculture's forecast for China in the 25/26 season is a production of 6.25 million tons, imports of 1.4 million tons, consumption of 7.4 million tons, and an ending inventory of 8.23 million tons [4]. - **Price and Inventory**: The average domestic cotton 3128B price is expected to be between 15,000 - 17,000 yuan per ton, and the Cotlook A index is expected to be between 75 - 100 cents per pound [13]. 3.5 Position Data No information related to position data is provided in the report.

Report Investment Rating - No investment rating information is provided in the report. Core View - The current decline in cotton prices is beneficial for the outflow of high-premium warehouse receipts, but the expectation of tight supply and demand of cotton at the end of the domestic year remains unchanged, which may still strongly support cotton prices. In the short term, cotton prices may gradually enter a volatile pattern. Attention should be paid to the implementation of domestic import quota policies, the speed of cotton inventory reduction during the off - season, and the adjustment of the China - US trade agreement [4]. Summary by Directory Domestic Market - **Supply**: As of July 24, the national new cotton sales rate was 96.5%, 7.6 percentage points higher than the same period last year and 8.2 percentage points higher than the average of the past four years [1]. - **Import**: In June, China's cotton import volume was 30,000 tons, a decrease of 10,000 tons from the previous month and 130,000 tons from the same period last year; the棉纱 import volume was 110,000 tons, an increase of 10,000 tons from the previous month and the same as the same period last year; the cotton cloth import volume was 4,289.55 tons, a decrease of 3.44% from the previous month and 24.37% from the same period last year [1]. - **Demand**: In June, the domestic retail sales of textile and clothing were 127.54 billion yuan, an increase of 4.08% from the previous month and 3.10% from the same period last year; the export volume of textile and clothing was 27.315 billion US dollars, an increase of 4.22% from the previous month and a decrease of 0.13% from the same period last year [1]. - **Inventory**: As of July 15, the total industrial and commercial inventory of cotton in the country was 3.4245 million tons, a decrease of 308,300 tons from the end of June. Among them, the commercial inventory was 2.5424 million tons, a decrease of 287,400 tons from the end of June, and the industrial inventory was 882,100 tons, a decrease of 20,900 tons from the end of June [1]. International Market US Market - **Supply**: As of July 27, the budding rate of cotton in the United States was 80%, 6% behind the same period last year and 3% behind the average of the past five years; the boll - setting rate was 44%, 8% behind the same period last year and 2% behind the average of the past five years; the overall good - quality rate of cotton plants was 55%, a decrease of 2 percentage points from the previous month and an increase of 6 percentage points from the same period last year [1]. - **Demand**: From July 18 - 24, the net signing of US upland cotton for the 24/25 season was 8,868 tons, significantly higher than the average of the past four weeks; the shipment of upland cotton was 52,367 tons, an increase of 25% from the previous week and 10% from the average of the past four weeks; the net signing of Pima cotton was 23 tons, the shipment of Pima cotton was 1,973 tons, the signing of new - season upland cotton was 16,261 tons, and the signing of new - season Pima cotton was 1,134 tons [1]. Southeast Asian Market - **Supply**: As of July 25, the sown area of new - season cotton in India reached 10.3 million hectares, a decrease of about 2.0% from the same period last year [1]. - **Demand**: In June, Vietnam's textile and clothing export volume was 3.597 billion US dollars, an increase of 9.45% from the previous month and 13.86% from the same period last year; Bangladesh's clothing export volume was 2.788 billion US dollars, a decrease of 28.87% from the previous month and 6.31% from the same period last year; India's clothing export volume was 1.31 billion US dollars, a decrease of 13.30% from the previous month and an increase of 1.23% from the same period last year; Pakistan's textile and clothing export volume was 1.522 billion US dollars, a decrease of 0.60% from the previous month and an increase of 7.59% from the same period last year [1]. Futures Market - **Cotton Futures**: The closing prices of Zhengmian 01, 05, and 09 were 13,785 yuan, 13,730 yuan, and 13,585 yuan respectively, with weekly declines of 330 yuan (-2.34%), 310 yuan (-2.21%), and 585 yuan (-4.13%) [21][24]. - **Spot Market**: The prices of CC Index 3128B, CC Index 2227B, and CC Index 2129B were 15,580 yuan, 13,670 yuan, and 15,873 yuan respectively, with increases of 31 yuan (0.2%), 32 yuan (0.23%), and 7 yuan (0.04%) [24]. - **Spreads**: The CF1 - 5 spread was 65 yuan, a decrease of 10 yuan; the CF5 - 9 spread was 125 yuan, an increase of 295 yuan; the CF9 - 1 spread was - 190 yuan, a decrease of 285 yuan [24]. - **Import Prices**: The price of FC Index M was 13,738 yuan, an increase of 45 yuan (0.33%); the price of FCY Index C32s was 21,230 yuan, an increase of 11 yuan (0.05%) [24]. - **Cotton Yarn**: The closing price of cotton yarn futures was 19,740 yuan, a weekly decline of 630 yuan (-3.09%); the spot price was 20,670 yuan, a decline of 70 yuan (-0.34%) [24].

Group 1 - The core viewpoint of the article indicates a decline in cotton futures prices, with the domestic and international market showing mixed signals and a lack of clear direction [1] - As of Friday's close, cotton futures for the 2509 contract were reported at 14,170 yuan/ton, down 100 yuan/ton, a decrease of 0.70% [1] - The weighted average price of cotton in the domestic market was 15,549 yuan/ton, reflecting an increase of 41 yuan/ton [1] Group 2 - Internationally, the USDA reported a significant drop in weekly cancellations of U.S. cotton contracts for the 2024/25 season, totaling 0.74 million tons, which is a substantial decrease compared to previous weeks [1] - The export volume of cotton products from China for June 2025 was 628,400 tons, a year-on-year increase of 2.46%, but a month-on-month decrease of 4.28% [1] - The market analysis suggests that the global cotton supply for the 2025/26 season is expected to be loose due to increased production in Brazil and China, despite a tight domestic inventory situation [1]