Report Industry Investment Rating - Not provided in the report Core Viewpoints - ICE cotton futures rose slightly on Wednesday, and investors remained cautious ahead of the US Department of Agriculture's planting intention report next week. The ICE May cotton futures contract closed up 0.56 cents, or 0.83%, at 68.18 cents per pound [2]. - In the domestic market, on the supply side, cotton imports increased significantly year - on - year, and port inventories continued to grow. From January to February 2026, China imported 370,000 tons of cotton, a 41% year - on - year increase. On the consumption side, the demand in the textile industry's "Golden March and Silver April" is slowly starting, spinning mills' operation continues to resume production, yarn sales are good, and inventories have decreased significantly. It is expected that the center of cotton prices will move up [2]. Summary by Directory Futures Market - Zhengzhou cotton main contract closing price (daily, yuan/ton): 15,420, up 80; cotton futures top 20 net positions (lots): - 185,366, up 1,051; main contract positions: cotton (daily, lots): 550,380, down 3,264; warehouse receipt quantity: cotton (daily, sheets): 12,444, up 100; China Cotton Price Index: CCIndex: 3128B (daily, yuan/ton): 16,745, up 34 [2]. - Cotton yarn main contract closing price (daily, yuan/ton): 21,640, down 30; cotton yarn futures top 20 net positions (lots): - 758, up 2; main contract positions: cotton yarn (daily, lots): 11,488, down 1,484; warehouse receipt quantity: cotton yarn (daily, sheets): 227, down 2; China Yarn Price Index: pure cotton carded yarn 32 - count (daily, yuan/ton): 22,180, up 30 [2]. Spot Market - China's imported cotton price index: FCIndexM: 1% tariff (daily, yuan/ton): 13,169, up 101; arrival price: imported cotton yarn price index: pure cotton carded yarn 32 - count (daily, yuan/ton): 22,528, up 12 [2]. - China's imported cotton price index: FCIndexM: sliding - scale duty (daily, yuan/ton): 14,081, up 70; arrival price: imported cotton yarn price index: pure cotton combed yarn 32 - count (daily, yuan/ton): 23,949, up 13 [2]. Upstream Situation - National cotton sowing area (annual, thousand hectares): 2,838.3, up 48.3; national cotton output (annual, ten thousand tons): 616, up 54 [2]. Industry Situation - Cotton and cotton yarn price difference (daily, yuan/ton): 5,469, up 51; industrial inventory: cotton: national (monthly, ten thousand tons): 89.4, up 3.3 [2]. - Cotton: import quantity: monthly value (monthly, ten thousand tons): 17, down 4; cotton yarn: import quantity: monthly value (monthly, tons): 130,000, down 30,000 [2]. - Imported cotton profit (daily, yuan/ton): 2,630, down 91; commercial inventory: cotton: national (monthly, ten thousand tons): 547.7, down 31.17 [2]. Downstream Situation - Inventory days: yarn (monthly, days): 21.45, down 0.26; inventory days: grey cloth (monthly, days): 33.24, up 0.11 [2]. - Cloth: output: monthly value (monthly, billion meters): 30.1, up 2; yarn: output: monthly value (monthly, ten thousand tons): 213.2, up 9.3 [2]. - Clothing and clothing accessories: export amount: monthly value (monthly, ten thousand US dollars): 11,061,465.19, down 2,748,526.81; textile yarns, fabrics and products: export amount: monthly value (monthly, ten thousand US dollars): 11,382,891.7, down 2,808,585.3 [2]. Option Market - Cotton at - the - money call option implied volatility (%): 14.93, up 1.91; cotton at - the - money put option implied volatility (%): 14.93, up 1.9 [2]. - Cotton 20 - day historical volatility (%): 10.03, down 6.19; cotton 60 - day historical volatility (%): 14.44, up 0.1 [2]. Industry News - The Brazilian Cotton Growers Association (Abrapa) reported that Brazil exported 270,500 tons of cotton in February, a 1.5% year - on - year decrease. In the first seven months of the 2025/26 season (from August 2025 to February 2026), cumulative cotton exports reached 1.9925 million tons, a 4.6% year - on - year increase. In February, China, Turkey, and Bangladesh imported 173,000 tons of cotton. Cumulatively in the 2025/26 season, these three countries imported 1.1349 million tons, accounting for 57% of Brazil's cotton exports during the same period [2].

1. Report Industry Investment Rating - No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - After the short - term bullish factors are digested, the price of Zhengzhou cotton futures is in a state of shock adjustment. Attention should be paid to the influence of macro news. [2] 3. Summary According to Related Catalogs 3.1 Futures Market - Zhengzhou cotton main contract closing price (daily, yuan/ton): 15205, down 50; cotton yarn main contract closing price (daily, yuan/ton): 21055, down 45 [2] - Cotton futures top 20 net positions (lots): - 192533, down 2622; cotton yarn futures top 20 net positions (lots): - 1535, up 25 [2] - Main contract positions: cotton (daily, lots): 768205, down 10408; main contract positions: cotton yarn (daily, lots): 14010, down 499 [2] - Warehouse receipt quantity: cotton (daily, sheets): 11379, up 8; warehouse receipt quantity: cotton yarn (daily, sheets): 0, unchanged [2] 3.2 Spot Market - China Cotton Price Index: CCIndex: 3128B (daily, yuan/ton): 16571, down 84; China Imported Cotton Price Index: FCIndexM: 1% tariff (daily, yuan/ton): 12445, down 55 [2] - China Imported Cotton Price Index: FCIndexM: sliding - duty (daily, yuan/ton): 13633; to - port price: Imported Cotton Yarn Price Index: pure - cotton carded yarn 32 - count (daily, yuan/ton): 21920, up 59 [2] - To - port price: Imported Cotton Yarn Price Index: pure - cotton combed yarn 32 - count (daily, yuan/ton): 23444, up 63 [2] 3.3 Upstream Situation - National cotton sowing area (annual, thousand hectares): 2838.3, up 48.3; national cotton output (annual, ten thousand tons): 616, up 54 [2] 3.4 Industry Situation - Cotton - yarn price difference (CY C32S - CC3128B, yuan/ton): 5349, up 20; industrial inventory: cotton: national (monthly, ten thousand tons): 86.1, up 1.3 [2] - Cotton: import quantity: monthly value (monthly, ten thousand tons): 18, up 6; cotton yarn: import quantity: monthly value (monthly, tons): 170000, up 20000 [2] - Imported cotton profit (daily, yuan/ton): 2938, up 35; commercial inventory: cotton: national (monthly, ten thousand tons): 578.87, up 0.4 [2] 3.5 Downstream Situation - Inventory days: yarn (monthly, days): 21.71, down 3.41; inventory days: grey cloth (monthly, days): 33.13, down 0.63 [2] - Cloth: output: monthly value (monthly, billion meters): 30.1, up 2; yarn: output: monthly value (monthly, ten thousand tons): 213.2, up 9.3 [2] - Clothing and clothing accessories: export amount: monthly value (monthly, ten thousand US dollars): 13412412, up 1818726; textile yarns, fabrics and products: export amount: monthly value (monthly, ten thousand US dollars): 12579603, up 303870 [2] 3.6 Option Market - Cotton at - the - money call option implied volatility (%): 16.16, down 0.19; cotton at - the - money put option implied volatility (%): 16.16, down 0.19 [2] - Cotton 20 - day historical volatility (%): 18.38, down 0.09; cotton 60 - day historical volatility (%): 13.74, unchanged [2] 3.7 Industry News - As of 24:00 on March 02, 2026, the cumulative notarized inspection of cotton processed by national cotton processing enterprises in accordance with the requirements of the cotton quality inspection system reform plan in the 2025/26 season was 33155737 bales, totaling 7484308 tons, a year - on - year increase of 13.38%. The cumulative notarized inspection volume of Xinjiang cotton was 7105688 tons, a year - on - year increase of 13.55%. Among them, the inspection quantity of saw - ginned fine - staple cotton was 32984292 bales, the inspection quantity of roller - ginned fine - staple cotton was 19805 bales, and the inspection quantity of long - staple cotton was 151640 bales [2] - Intercontinental Exchange (ICE) cotton futures fell on Tuesday, hitting a nearly two - week low. The market was pressured by the strengthening of the US dollar and the escalation of the tense situation in the Middle East. The ICE May cotton futures contract closed down 0.55 cents, or 0.85%, at 64.04 cents per pound [2] 3.8 Supply and Consumption in the Domestic Market - On the supply side, the warehousing speed of port cotton has slowed down, while the ex - warehouse speed is acceptable, mainly due to the increased downstream procurement after the festival. As of February 26, the inventory of major ports for imported cotton was 53.81 tons, a month - on - month increase of 0.75% [2] - On the consumption side, Xinjiang textile enterprises are basically in operation, the spinning startup rate has rebounded, the finished product inventory has increased, and they mainly ship previous orders [2]

Report Industry Investment Rating - Not provided Core Viewpoints - The domestic cotton market's supply side shows that the national cotton inspection volume has exceeded 5.5 million tons, and commercial inventory is expected to grow rapidly. In November 2025, China's cotton imports increased slightly month - on - month, and port inventory is expected to continue growing. On the demand side, the peak - season procurement of downstream textile enterprises has ended, and the off - season characteristics are emerging, with slow market shipment. It is expected that cotton prices will fluctuate in the short term [2] Summary by Directory Futures Market - Zhengzhou cotton's main contract closing price is 14,140 yuan/ton, up 70 yuan; cotton futures' top 20 net positions are - 139,807 hands, down 1,261 hands; the main contract's cotton holding volume is 798,985 hands, up 13,923 hands; the cotton warehouse receipt quantity is 4,088 sheets, up 13 sheets. The main contract closing price of cotton yarn is 20,185 yuan/ton, up 75 yuan; cotton yarn futures' top 20 net positions are - 1,371 hands, down 111 hands; the main contract's cotton yarn holding volume is 23,262 hands, down 32 hands; the cotton yarn warehouse receipt quantity is 14 sheets, up 5 sheets [2] Spot Market - The China Cotton Price Index (CCIndex:3128B) is 15,213 yuan/ton, up 59 yuan; the China Imported Cotton Price Index (FCIndexM:1% tariff) is 12,812 yuan/ton, up 43 yuan; the China Imported Cotton Price Index (FCIndexM:sliding duty) is 13,861 yuan/ton, up 34 yuan. The China Yarn Price Index (pure - cotton carded yarn 32 - count) is 20,990 yuan/ton, up 60 yuan; the arrival price of the imported cotton yarn price index (pure - cotton carded yarn 32 - count) is 21,133 yuan/ton, down 5 yuan; the arrival price of the imported cotton yarn price index (pure - cotton combed yarn 32 - count) is 22,306 yuan/ton, up 78 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 [2] Industry Situation - The cotton - yarn price difference is 5,836 yuan/ton, up 51 yuan; the national industrial inventory of cotton is 850,000 tons, up 65,000 tons; the monthly import volume of cotton is 90,000 tons, down 10,000 tons; the monthly import volume of cotton yarn is 140,000 tons, up 10,000 tons; the import cotton profit is 1,293 yuan/ton, down 25 yuan; the national commercial inventory of cotton is 2.9306 million tons, up 1.9089 million tons [2] Downstream Situation - The inventory days of yarn are 26.12 days, up 1.27 days; the inventory days of grey cloth are 31.97 days, up 0.85 days; the monthly output of cloth is 2.62 billion meters, down 0.18 billion meters; the monthly output of yarn is 2.001 million tons, down 73,000 tons; the monthly export amount of clothing and clothing accessories is 11,003,480.43 million US dollars, down 1,449,766.57 million US dollars; the monthly export amount of textile yarns, fabrics and products is 11,258,418.92 million US dollars, down 708,097.08 million US dollars [2] Option Market - The implied volatility of cotton at - the - money call options is 9.33%, up 0.19%; the implied volatility of cotton at - the - money put options is 9.32%, up 0.18%; the 20 - day historical volatility of cotton is 5.07%, down 0.19%; the 60 - day historical volatility of cotton is 6.32%, up 0.03% [2] Industry News - Brazil exported 316,600 tons of cotton in the first three weeks of December, with a daily average export volume of 21,100 tons, a 26% increase compared to the daily average export volume of 16,800 tons in December of the previous year. The total export volume in December of the previous year was 352,800 tons. From December 4th, in the week ending, the net increase in export sales of US upland cotton in the 2025/26 season was 153,300 bales, a 13% increase from the previous week and a 20% decrease from the average of the previous four weeks. The export shipment volume of US upland cotton in the 2025/26 season was 101,600 bales, a 17% decrease from the previous week and a 17% decrease from the average of the previous four weeks. ICE cotton futures fell slightly on Monday. The ICE March cotton futures contract closed down 0.14 cents, or 0.22%, at 63.61 cents per pound [2]

Report Industry Investment Rating - Not provided Core Viewpoints - The supply side of the domestic cotton market shows that Xinjiang cotton has entered the large - scale harvesting stage with over 50% progress, faster than last year, and the processing cost of ginning factories has slightly increased. Inland cotton acquisition is slow due to continuous rainfall. The demand side shows that the demand of downstream textile enterprises is relatively weak, and the "Silver October" replenishment has not improved significantly. New cotton is in the listing stage, and the upward space of cotton prices is expected to be limited in the short term due to hedging pressure [2] Summary by Relevant Catalogs Futures Market - Zhengzhou cotton main contract closing price is 13,620 yuan/ton, up 55; cotton futures top 20 net positions are - 113,788 hands, down 3,097; main contract holdings of cotton are 578,488 hands, down 596; cotton warehouse receipts are 2,460, down 11. Cotton yarn main contract closing price is 19,865 yuan/ton, up 95; cotton yarn futures top 20 net positions are - 181 hands, down 40; main contract holdings of cotton yarn are 23,749 hands, down 346; cotton yarn warehouse receipts are 4, down 2 [2] Spot Market - China Cotton Price Index (CCIndex:3128B) is 14,840 yuan/ton, up 10; China Yarn Price Index of pure - combed 32 - count cotton yarn is 20,475 yuan/ton, down 25. China Imported Cotton Price Index (FCIndexM:1% tariff) is 13,116 yuan/ton, up 60; China Imported Cotton Price Index (FCIndexM:sliding - scale duty) is 14,050 yuan/ton. The arrival price of imported cotton yarn price index of pure - combed 32 - count cotton yarn is 21,146 yuan/ton, up 1; the arrival price of imported cotton yarn price index of pure - combed 32 - count combed cotton yarn is 22,493 yuan/ton, up 2 [2] Upstream Situation - The national cotton sowing area is 2,838.3 thousand hectares, up 48.3; the national cotton output is 6.16 million tons, up 540,000 tons [2] Industry Situation - The cotton - yarn price difference is 5,635 yuan/ton, down 10; industrial inventory of cotton is 861,000 tons, down 9,000 tons; cotton import volume is 100,000 tons, up 30,000 tons; cotton yarn import volume is 130,000 tons, unchanged. Imported cotton profit is 780 yuan/ton, down 43; commercial inventory of cotton is 1.0217 million tons, down 460,000 tons [2] Downstream Situation - Yarn inventory days are 25.24 days, up 0.39; grey fabric inventory days are 31.43 days, up 0.31. Cloth output is 2.811 billion meters, up 110 million meters; yarn output is 2.0738 million tons, up 45,900 tons. The monthly export value of clothing and clothing accessories is 12453247000 dollars, down 169265700 dollars; the monthly export value of textile yarns, fabrics and products is 11966516000 dollars, down 42668600 dollars [2] Option Market - The implied volatility of cotton at - the - money call options is 9.08%, up 2.58; the implied volatility of cotton at - the - money put options is 9.08%, up 2.58. The 20 - day historical volatility of cotton is 7.71%, down 0.49; the 60 - day historical volatility of cotton is 7.95%, down 0.02 [2] Industry News - Brazil exported 255,000 tons of cotton in the first four weeks of October, with a daily average of 14,200 tons, 11% more than the daily average in October last year. The total export volume in October last year was 280,900 tons. ICE cotton futures rose on Tuesday, with the December contract up 0.49 cents, or 0.76%, to settle at 65.05 cents per pound [2]