Group 1 - The China Cotton Association anticipates a total cotton production of 7.22 million tons for the 2025 season, representing an 8.3% year-on-year increase, with Xinjiang contributing 6.91 million tons, a 9.2% increase, marking a historical high [1] - The association has issued a set of recommendations for cotton purchasing enterprises to ensure smooth acquisition processes, including adjusting purchasing pace, maintaining market order, enhancing risk management, and improving quality standards [1] - Domestic cotton prices have been declining, with the China Cotton Price Index (CCIndex 3128B) averaging 15,308 yuan/ton, down 143 yuan/ton week-on-week, while Zhengzhou futures contract CF601 averaged 13,861 yuan/ton, down 163 yuan/ton [1] Group 2 - International cotton prices have shown a slight increase, with the Cotlook A Index averaging 77.8 cents/pound, up 0.1 cents/pound week-on-week, while the ICE cotton futures contract averaged 65.1 cents/pound, up 0.5 cents/pound [1] - In Xinjiang, cotton harvesting is in its peak stage, with a ginning rate nearing 50%, and initial selling prices ranging from 7.3 to 7.6 yuan/kg, primarily for testing purposes [2] - Weather conditions in Xinjiang are generally warm, with expected rainfall in the northern regions, necessitating flood prevention measures to protect cotton quality and yield [2]

Information Summary - Report Date: August 29, 2025 [2] - Industry: Cotton [1] - Research Analysts: Yulan Lan, Zhenlei Lin, Haifeng Wang, Chenliang Hong, Youran Liu [3] 1. Report Industry Investment Rating No relevant information provided. 2. Report's Core View - The Zhengzhou cotton market is experiencing a period of oscillatory adjustment. The latest price index for 328-grade cotton is 15,336 yuan/ton, a decrease of 6 yuan/ton from the previous trading day. The mainstream sales basis quotes for 2024/25 northern Xinjiang local machine-picked cotton and southern Xinjiang Kashgar machine-picked cotton are provided. The cotton yarn market has a stable trading volume, with conventional yarns being the most popular, and some low-count yarns also seeing increased sales. However, spinning mills are still operating at limited capacity, and overall market confidence is weak. The cotton fabric market has not seen significant changes, with sales remaining slow and orders for weaving factories having limited recovery [7]. - In the overseas market, the weekly export sales data for US cotton has weakened, the drought coverage rate in major cotton-growing areas has increased, the good and excellent rate has slightly decreased week-on-week, and the net long position of CFTC funds remains at a low level. Therefore, the short-term trend of the external market is difficult to break out of the range-bound pattern. In the domestic market, the cotton in Xinjiang is in the boll-opening and flocculation stage, and the market is waiting for guidance from the new cotton purchase. Recently, there have been rumors that a large amount of new cotton has been pre-sold, and the expectation of a rush to purchase new cotton has increased. However, the expected stable increase in production also brings pressure on the long-term market. On the demand side, the inventory of cotton yarn products continues to decline slightly, and the sales of fabric factories are not as good as those of yarn factories. The market is still observing the performance of the traditional peak season. Overall, due to limited changes in the fundamentals, the market is expected to continue its oscillatory adjustment [8]. 3. Summary by Relevant Catalogs 3.1. Market Review and Operation Suggestions - **Domestic Market**: Zhengzhou cotton is oscillating and adjusting. The spot price of cotton has decreased slightly, and the basis quotes for different regions are provided. The cotton yarn market has a stable trading volume, with conventional yarns being the most popular, and some low-count yarns also seeing increased sales. However, spinning mills are still operating at limited capacity, and overall market confidence is weak. The cotton fabric market has not seen significant changes, with sales remaining slow and orders for weaving factories having limited recovery [7]. - **Overseas Market**: The weekly export sales data for US cotton has weakened, the drought coverage rate in major cotton-growing areas has increased, the good and excellent rate has slightly decreased week-on-week, and the net long position of CFTC funds remains at a low level. Therefore, the short-term trend of the external market is difficult to break out of the range-bound pattern [8]. - **Market Outlook**: The cotton in Xinjiang is in the boll-opening and flocculation stage, and the market is waiting for guidance from the new cotton purchase. Recently, there have been rumors that a large amount of new cotton has been pre-sold, and the expectation of a rush to purchase new cotton has increased. However, the expected stable increase in production also brings pressure on the long-term market. On the demand side, the inventory of cotton yarn products continues to decline slightly, and the sales of fabric factories are not as good as those of yarn factories. The market is still observing the performance of the traditional peak season. Overall, due to limited changes in the fundamentals, the market is expected to continue its oscillatory adjustment [8]. 3.2. Industry News - In Hutubi County, Xinjiang, 869,000 mu of cotton is gradually flocculating. The county's 24 cotton purchase and processing enterprises have almost completed the overhaul of their production equipment, which is expected to finish in mid-September. The funds and personnel for cotton purchase are also ready, and the purchase of new cotton is expected to start around September 20. During the purchase period, the local development and reform commission will strengthen supervision to ensure the interests of cotton farmers [9]. 3.3. Data Overview The report provides various data charts, including the China Cotton Price Index, cotton spot price, cotton futures price, cotton basis change, CF1 - 5 spread, CF5 - 9 spread, CF9 - 1 spread, cotton commercial inventory, cotton industrial inventory, and warehouse receipt volume. All data sources are from Wind and the Research and Development Department of CCB Futures [17][18][19][28].

Report Overview - Industry: Cotton [1] - Date: August 27, 2025 [2] Group 1: Report Core View - Zhengzhou cotton fluctuated and adjusted. The latest 328 - grade cotton price index was 15,334 yuan/ton, up 99 yuan/ton from the previous trading day. The mainstream sales basis quotes for 2024/25 northern Xinjiang local machine - picked cotton and southern Xinjiang Kashgar machine - picked cotton were given. The cotton yarn market had acceptable transactions, and the cotton fabric market was stable with limited order recovery [7]. - In the overseas market, the weekly export sales data of US cotton weakened, the drought coverage in major cotton - growing areas increased, the good - to - excellent rate decreased slightly week - on - week, and the short - term external market was likely to fluctuate within a range. In the domestic market, the Xinjiang cotton area was in the boll - opening and flocculation stage. There were rumors of new cotton pre - sales, and the expectation of rush - buying at the listing stage increased, but the expected stable - to - increasing output also brought pressure in the long - term. The finished yarn inventory continued to decline slightly, and the market was observing the traditional peak season. The 200,000 - ton sliding - scale duty processing trade quota had limited impact on the market [8]. Group 2: Industry News - As of the week ending August 24, the boll - setting rate of US cotton was 81%, the flocculation rate was 20%, and the good - to - excellent rate was 54% [9]. - As of August 22, 2025, the total commercial inventory of cotton was 1.7126 million tons, a decrease of 143,500 tons from the previous week, and the inventory in Xinjiang was less than one million tons [9]. Group 3: Data Overview - The report presented multiple data charts, including China's cotton price index, cotton spot price, cotton futures price, cotton basis change, CF1 - 5 spread, CF5 - 9 spread, CF9 - 1 spread, cotton commercial inventory, cotton industrial inventory, warehouse receipt volume, US dollar - RMB exchange rate, and US dollar - Indian rupee exchange rate [17][18][27]