Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The Zhengzhou cotton market has been undergoing narrow - range oscillatory adjustments. The cotton spot price has slightly increased, while the downstream cotton yarn and cotton fabric markets are gradually weakening. Considering the macro - disturbances and the situation of both domestic and foreign markets, the cotton market has limited fluctuations in the near term, and it is advisable to adopt a range - trading strategy [7][8]. 3. Summary by Directory 3.1 Market Review and Operation Suggestions - **Market Review**: The Zhengzhou cotton has been in a narrow - range oscillatory adjustment. The latest 328 - grade cotton price index is 14,578 yuan/ton, up 6 yuan/ton from the previous trading day. The mainstream sales basis quotes for different types of cotton in Xinjiang vary. The atmosphere and prices in the pure - cotton yarn market have changed little, with a slight increase in traders' inventory and a certain reduction in spinners' inventory. The all - cotton grey fabric market remains dull, with slower shipment, increased inventory, and manufacturers offering volume - based discounts [7]. - **Operation Suggestions**: In the overseas market, the US cotton planting progress is slower than the same period last year, and the drought level has dropped to the 5 - year average. The external market is mainly oscillating within a wide - range. In the domestic market, the new cotton planting is generally in good condition, with the sown area expected to increase steadily. The downstream industry is gradually weakening. Given these factors, the cotton market has limited changes recently, and range trading is recommended [8]. 3.2 Industry News - As of the week ending May 25, the US cotton planting progress was 52%, lower than 57% in the same period last year and the 5 - year average of 56%. The budding rate was 3%, lower than 4% in the same period last year and the 5 - year average of 4%. - The India Cotton Association (CAI) expects India's cotton consumption in the 2024/25 season to be 30.7 million bales (170 kg per bale), a decrease of about 2% from the previous year, and has revised down the consumption forecast by 800,000 bales from the initial estimate [9].

Report Industry Investment Ratings - Sugar: Oscillation [1] - Cotton: Oscillation [1] Core Views - Sugar: Sugarcane planting area has increased due to economic benefits, national policies, and support from sugar - making enterprises. However, early drought in Guangxi limited sugar production growth. Sugar consumption is expected to remain stable or increase slightly, the supply - demand gap is basically stable, and imports are expected to stay at 5 million tons. Short - term strategy is to wait and see [1]. - Cotton: The cotton target price subsidy policy in Xinjiang is stable, leading to a slight increase in planting area, while the planting area in inland areas continues to decline. The climate during sowing and emergence was good, with expected stable yield per unit area. Total cotton output is expected to be 6.25 million tons, a 1.4% increase from last year. Cotton consumption is expected to be weak due to US tariffs, with consumption expected to be 7.4 million tons, a decrease of 200,000 tons from last year, and imports to be 1.4 million tons, a decrease of 100,000 tons. Short - term strategy is to wait and see [1]. Data Summary Price Changes - **Outer - market Quotes**: On May 28 - 29, 2025, the price of US sugar increased by 0.77% from $16.91 to $17.04, and the price of US cotton decreased by 0.46% from $65.33 to $65.03 [3]. - **Spot Prices**: Sugar prices in Nanning and Kunming remained unchanged on May 28 - 29, 2025. The cotton index 328 decreased by 0.04%, and the price of cotton in Xinjiang decreased by 0.34% [3]. - **Spreads**: Different sugar and cotton spreads showed various changes on May 28 - 29, 2025, with the SR01 - 05 spread decreasing by 5.56%, the SR09 - 01 increasing by 1.65%, etc. [3]. - **Import Prices**: The cotton cotlookA price remained unchanged on May 28 - 29, 2025 [3]. - **Profit Margins**: The sugar import profit remained unchanged on May 28 - 29, 2025 [3]. Options and Warehouse Receipts - **Options**: The implied volatilities of SR509C5800, SR509P5800, CF509C13400, and CF509P13400 are 0.0801, 0.0811, 0.0978, and 0.0967 respectively [3]. - **Warehouse Receipts**: On May 28 - 29, 2025, the number of sugar warehouse receipts decreased by 0.32% to 31,481, and the number of cotton warehouse receipts decreased by 0.46% to 11,157 [3]. Company Information - **Company Overview**: CINDA Futures Co., Ltd. is a limited - liability company specializing in domestic futures business. It is wholly - owned by CINDA Securities Co., Ltd., with a registered capital of 600 million RMB. It is a well - regulated and high - reputation large - scale futures company in China [9]. - **Exchange Membership**: It is a full - settlement member of the China Financial Futures Exchange, a full - fledged member of the Shanghai Futures Exchange, Zhengzhou Commodity Exchange, and Dalian Commodity Exchange, and a member of the Shanghai International Energy Exchange and Guangzhou Futures Exchange [9].