Report Summary 1. Report Industry Investment Rating - No information provided on the industry investment rating. 2. Core Viewpoints - ICE cotton futures fell on Wednesday due to the rising US dollar, with the ICE March cotton futures contract down 0.57 cents or 0.89%, settling at 64.81 cents per pound. In the domestic market, as of November 10, 2025, the cotton picking progress in Xinjiang was about 98.5%, 0.5 percentage points slower than the same period last year. The picking and purchasing progress in Xinjiang has accelerated, and the purchase price has slightly decreased. The commercial inventory is gradually rising, and the imported cotton inventory has significantly increased, reaching a new high in 3.5 months. The market trading volume is limited due to less出库 of imported cotton, and the arrival volume is stable. On the demand side, the spinning processing profit has slightly improved, and enterprises' confidence in future demand shows signs of improvement, but the increase in new orders is still limited. Overall, the pressure of new cotton listing is increasing, but the lower - than - expected yield per unit in Xinjiang cotton supports the cotton market. The downstream demand is weak, but the tariff reduction is beneficial for cotton textile exports, also providing some support. Currently, with both long and short factors intertwined, the market will fluctuate in the short term [2]. 3. Summary by Directory 3.1 Futures Market - Zhengzhou cotton main contract closing price: 13,490 yuan/ton, down 25 yuan; cotton futures top 20 net positions: - 96,988 hands, up 4,277 hands; main contract cotton positions: 562,897 hands, down 1,984 hands; cotton warehouse receipts: 4,180 sheets, up 296 sheets. - Cotton yarn main contract closing price: 19,790 yuan/ton, unchanged; cotton yarn futures top 20 net positions: 20 hands, up 203 hands; main contract cotton yarn positions: 24,597 hands, up 205 hands; cotton yarn warehouse receipts: 30 sheets, down 1 sheet [2]. 3.2 Spot Market - China Cotton Price Index (CCIndex:3128B): 14,819 yuan/ton, down 32 yuan; China Imported Cotton Price Index (FCIndexM:1% tariff): 13,023 yuan/ton, down 69 yuan; China Imported Cotton Price Index (FCIndexM:sliding - scale tariff): 13,988 yuan/ton. - China Yarn Price Index (pure - cotton carded yarn 32 - count): 20,490 yuan/ton, unchanged; arrival price of imported cotton yarn price index (pure - cotton carded yarn 32 - count): 21,100 yuan/ton, down 103 yuan; arrival price of imported cotton yarn price index (pure - cotton combed yarn 32 - count): 22,447 yuan/ton, down 189 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 0.54 million tons [2]. 3.4 Industry Situation - Cotton - yarn price difference: 5,639 yuan/ton, down 39 yuan; industrial inventory of cotton: 861,000 tons, down 9,000 tons; cotton import volume: 100,000 tons, up 30,000 tons; cotton yarn import volume: 130,000 tons, unchanged; imported cotton profit: 863 yuan/ton, up 58 yuan; commercial inventory of cotton: 1.0217 million tons, down 460,000 tons [2]. 3.5 Downstream Situation - Inventory days of yarn: 24.85 days, down 1.73 days; inventory days of grey cloth: 31.12 days, down 2.75 days; cloth output: 2.8 billion meters, up 0.1 billion meters; yarn output: 2.074 million tons, up 46,000 tons; export value of clothing and clothing accessories: 12,453,247 thousand US dollars, down 1,692,656.63 thousand US dollars; export value of textile yarns, fabrics and products: 11,966,516 thousand US dollars, down 426,685.77 thousand US dollars [2]. 3.6 Option Market - Implied volatility of at - the - money call option for cotton: 8.31%, up 4.42 percentage points; implied volatility of at - the - money put option for cotton: 8.31%, up 4.42 percentage points; 20 - day historical volatility of cotton: 5.6%, up 0.22 percentage points; 60 - day historical volatility of cotton: 7.61%, down 0.14 percentage points [2]. 3.7 Industry News - In October 2025, China's cotton textile industry Purchasing Managers' Index (PMI) was 52.66%, up 8.37 percentage points from the previous month, rising above the boom - bust line for the first time in seven months since March this year [2].