Group 1: Market Information - Futures contracts' closing prices, price changes, trading volumes, and open - interest data for CF and CY contracts are presented, including CF01, CF05, CF09, CY01, CY05, and CY09 [2] - Spot prices of various cotton and yarn products are provided, such as CCIndex3128B, Cot A, and CY IndexC32S, along with their price changes [2] - Price spreads are given, including cotton and yarn inter - month spreads and cross - variety spreads, as well as domestic - foreign spreads [2] Group 2: Market News and Views Cotton Market - As of December 18, 2025, the cumulative inspection volume of U.S. upland cotton + Pima cotton was 2.4244 million tons, accounting for 78% of the estimated annual U.S. cotton production, 9% slower than the same period last year [4] - The ON - CALL data shows that as of December 12, 2025, the number of un - priced contracts of sellers on the ON - CALL 2603 contract decreased by 1,039 to 21,369, a decrease of 20,000 tons compared to last week [4] - In November 2025, the export volume of all - cotton grey fabrics was 48.58 million meters, a year - on - year increase of 22%, and the export value was $46.23 million, a year - on - year increase of 3.5% [5] - The new cotton in the 25/26 season is in good harvest, but the sales progress is fast, and ginneries have little pressure to sell. There are rumors that the cotton planting area in Xinjiang may decrease next year, and Xinjiang textile mills are expected to expand production capacity, all of which are positive for cotton prices [6] - Sino - U.S. relations are easing, and the mutual reduction of tariffs is beneficial for China's textile and clothing exports [6] - The cotton fundamentals are strong, and the price is expected to rise further. It is recommended to build long positions on dips [6] Trading Strategies - The U.S. cotton is expected to fluctuate in a range, while Zhengzhou cotton is expected to be bullish in the short - term [7] - For arbitrage and options trading, it is recommended to wait and see [8][9] Yarn Industry - The overall atmosphere in the pure - cotton yarn market is weak, except for high - count yarns. Some traders are optimistic about future consumption and buy on dips [9] - The pure - cotton grey fabric market remains differentiated. Weaving mills' orders have declined, and they mainly have small orders with tight delivery times. Profits are in the red, and they are not confident about the post - Chinese New Year market [9] Group 3: Options - Options contract data including closing prices, price change rates, implied volatility, and other parameters are presented for CF601C13400.CZC, CF601P13000.CZC, and CF601P12400.CZC [11] - The 10 - day HV of cotton increased slightly yesterday. The implied volatility of CF601 - C - 13400 is 6.7%, CF601 - P - 13000 is 11.4%, and CF601 - P - 12400 is 17.8% [11] - The PCR of the main contract of Zhengzhou cotton is 0.7339, and the volume PCR is 0.6421. The trading volumes of both call and put options have decreased today [12] - It is recommended to wait and see in options trading [13] Group 4: Relevant Attachments - Figures show various price spreads and basis data, including 1% tariff domestic - foreign cotton price spread, 1 - month, 5 - month, and 9 - month cotton basis, CY05 - CF05 and CY01 - CF01 spreads, and CF9 - 1 and CF5 - 9 spreads [15][18][22][23]

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The cotton market has strong fundamentals with multiple positive factors supporting it. There is a high probability that US cotton will move in a range-bound manner, while Zhengzhou cotton is expected to show a moderately bullish trend. It is recommended to build long positions on dips [6][7]. - The cotton yarn industry has a weak downstream demand. The cotton yarn market has a light trading volume, and the weaving mills have high inventory levels. Attention should be paid to the trend of Zhengzhou cotton and downstream restocking [9]. 3. Summary by Directory 3.1 Market Information - **Futures Market**: Most cotton and cotton yarn futures contracts closed lower. For example, the CF01 contract closed at 13,940, down 60; the CY01 contract closed at 19,855, down 40 [2]. - **Spot Market**: The CCIndex3128B price was 15,130 yuan/ton, up 68; the CY IndexC32S price was 20,830, unchanged [2]. - **Spreads**: In cotton, the 1 - 5 - month spread was -5, down 15; in cotton yarn, the 1 - 5 - month spread was -185, down 20 [2]. 3.2 Market News and Views - **Cotton Market News** - In November 2025, China's imported cotton yarn volume was about 150,000 tons, a month - on - month increase of about 10,000 tons and a year - on - year increase of about 30,000 tons. From January to November 2025, the total imported cotton yarn volume was 1.33 million tons, a year - on - year decrease of about 40,000 tons [4]. - In November 2025, China imported 120,000 tons of cotton, a year - on - year increase of 11,800 tons and a month - on - month increase of 31,000 tons. From January to November 2025, the cumulative imported cotton volume was 890,000 tons, a year - on - year decrease of 64% [4]. - The average temperature in the US cotton - growing areas was 49.79°F, 3.21°F higher than the same period last year; the average rainfall was 0.05 inches, 0.28 inches lower than the same period last year. The temperature in Texas increased and precipitation decreased, and the La Nina climate in the Northern Hemisphere winter may lead to drought during the sowing season [5]. - **Trading Logic**: Positive factors in the market support a strong cotton fundamentals. Technically, cotton has increased in positions and broken through the previous platform, with potential for further upward movement [6]. - **Trading Strategies** - **Single - side**: US cotton is likely to move in a range - bound manner, while Zhengzhou cotton is expected to trend moderately bullish [7]. - **Arbitrage**: Hold a wait - and - see attitude [8]. - **Options**: Hold a wait - and - see attitude [9]. - **Cotton Yarn Industry News** - Zhengzhou cotton is moderately bullish. The trading volume in the pure - cotton yarn market is light, mainly for rigid demand. Weaving mills have high inventory levels, but there is still restocking demand in some areas. The price of pure - cotton yarn was stable to slightly weak last week, and spinning mills with high inventory levels promoted sales by reducing prices [9]. - The trading volume in the all - cotton greige fabric market is light, with only small orders in some areas. Weaving mills have high inventory levels and limited destocking effects [9]. 3.3 Options - **Volatility**: The 10 - day HV of cotton yesterday was 6.4492, with a slight increase in volatility. The implied volatility of CF601 - C - 13400 was 6.7%, that of CF601 - P - 13000 was 11.4%, and that of CF601 - P - 12400 was 17.8% [11]. - **Options Strategy**: Hold a wait - and - see attitude [13]. 3.4 Related Attachments - The report provides multiple charts, including those showing the 1% tariff - based domestic and foreign cotton price spreads, cotton basis for different months, and spreads between cotton and cotton yarn contracts [15][18][22][23].

Group 1: Report Overview - The report is the Agricultural Products Daily Report dated December 10, 2024, focusing on cotton and cotton yarn [1] Group 2: Market Information Futures Market - CF01 contract closed at 13780, up 40, with a trading volume of 177,854 hands (an increase of 19801) and an open interest of 474,318 (a decrease of 4249) [2] - CF05 contract closed at 13760, up 35, with a trading volume of 116,043 hands (an increase of 19584) and an open interest of 496,555 (an increase of 27804) [2] - CF09 contract closed at 13900, up 40, with a trading volume of 2,112 hands (a decrease of 243) and an open interest of 15,702 (an increase of 594) [2] - CY01 contract closed at 19840, up 45, with a trading volume of 237 hands (a decrease of 107) and an open interest of 1320 (a decrease of 104) [2] - CY05 contract closed at 19965, up 15, with a trading volume of 8 hands (unchanged) and an open interest of 68 (a decrease of 2) [2] - CY09 contract closed at 20085, unchanged, with no trading volume and an open interest of 9 (unchanged) [2] Spot Market - CCIndex3128B was priced at 15004 yuan/ton, down 5; CY IndexC32S was 20800 yuan/ton, unchanged [2] - Cot A was 73.70 cents/pound, compared to the previous 73.95; FCY IndexC33S was 21059 yuan/ton, up 6 [2] - (FC Index):M: arrival price was 73.32 cents/pound, down 0.18; Indian S - 6 was 55800 yuan/ton, unchanged [2] - Polyester staple fiber was 7450 yuan/ton (compared to the previous 70); pure polyester yarn T32S was 11050 yuan/ton, unchanged [2] - Viscose staple fiber was 12800 yuan/ton, unchanged; viscose yarn R30S was 17320 yuan/ton, unchanged [2] Spreads - Cotton inter - month spreads: 1 - 5 month spread was 20, up 5; 5 - 9 month spread was - 140, down 5; 9 - 1 month spread was 120, unchanged [2] - Cotton yarn inter - month spreads: 1 - 5 month spread was - 125, up 30; 5 - 9 month spread was - 120, up 15; 9 - 1 month spread was 245, down 45 [2] - Cross - variety spread: CY01 - CF01 was 6060, up 5; CY05 - CF05 was 6205, down 20; CY09 - CF09 was 6185, down 40 [2] - Domestic - foreign spreads: domestic - foreign cotton spread (1% tariff) was 1895, down 12; domestic - foreign cotton spread (sliding tariff) was 962, unchanged; domestic - foreign yarn spread was - 259, down 6 [2] Group 3: Market News and Views Cotton Market News - According to the USDA's latest December global cotton production and sales forecast, total production was slightly reduced to 2608 million tons, total consumption was slightly reduced to 2582 million tons, and ending stocks increased by 1 million tons to 1654 million tons [4] - The Indian Cotton Association (CAI) reported that as of November 30, 2025, for the 2025/26 cotton balance sheet, compared with last month's assessment, production was increased by 8 million tons, imports were increased by 9 million tons, exports were increased by 2 million tons, and domestic demand was decreased by 9 million tons, resulting in an increase of 23 million tons in ending stocks. Compared with the previous year, beginning stocks increased by 36 million tons, production decreased by 5 million tons, imports increased by 15 million tons, domestic demand decreased by 32 million tons, exports remained flat, and ending stocks increased by 79 million tons [4] - The average temperature in the main U.S. cotton - producing areas (92.9% of production) was 44.31°F, 8.87°F lower than the same period last year; the average rainfall was 0.84 inches, 0.72 inches higher than the same period last year. In the Texas cotton - producing area, the average temperature was 48.22°F, 9.5°F lower than the same period last year; the average rainfall was 0.52 inches, 0.51 inches higher than the same period last year. The temperature in the U.S. cotton - producing areas and Texas is decreasing and rainfall is stable. The La Nina climate in the Northern Hemisphere winter is increasing the impact, and it is expected that the subsequent temperature will be lower than the historical average. The cotton - producing areas in the U.S. South are expected to be warmer and drier in winter, which may lead to drought during the sowing season [5] Trading Logic - In terms of fundamentals, with the large - scale listing of new cotton in November, there may be some selling - hedging pressure. On the supply side, although this year's production is a bumper harvest, the expected increase may be less than previously thought. On the demand side, as the peak season ends, the market enters a relatively off - season. Overall, with a large amount of new cotton on the market, the new - year production is expected to increase significantly but the increase may be less than expected. The recent order performance on the demand side is average, but the previous negative factors have basically been reflected in the market. The current cotton sales progress is at a high level in the same period over the years. It is expected that Zhengzhou cotton will mostly fluctuate strongly [6] Trading Strategies - Unilateral: It is expected that the future trend of U.S. cotton will mostly be range - bound, and Zhengzhou cotton is expected to fluctuate strongly [7] - Arbitrage: Wait and see [8] - Options: Wait and see [9] Cotton Yarn Industry News - The trading in the pure cotton yarn market is average. The combed high - count yarn has a good sales volume, while the inventory of other varieties has slightly increased. Traders and downstream fabric mills still mainly make rigid purchases, and some fabric mills have started year - end replenishment for next year's peak season. The prices were basically stable yesterday. After the recent price increase by spinning mills, there is a certain degree of acceptance from the downstream, but the overall cash - flow situation is still not optimistic, and the operating rate in the inland area has decreased. It is necessary to continue to pay attention to the trend of Zhengzhou cotton and downstream replenishment [9] - The trading in the all - cotton grey fabric market remains light. Manufacturers generally believe that there will be no significant improvement in orders in the short term, so they mainly focus on digesting inventory, with the willingness to sell as the main driving force. The sales of high - count and high - density varieties for spring and summer use in previous years are ordinary this year, and fabric mills have a strong willingness to accept orders [9] Group 4: Options Option Data - On November 24, 2025, for CF601C13400.CZC, the underlying contract price was 13585.00, the closing price was 00 EBE, the increase/decrease rate was 71.0%, IV was 6.7%, Delta was 0.7924, Gamma was 0.0012, Vega was 8.9763, Theta was - 2.5396, the theoretical leverage was 74.2350, and the actual leverage was 58.8238 [11] - For CF601P13000.CZC, the underlying contract price was 13585.00, the closing price was 7.00, the increase/decrease rate was - 75.9%, IV was 11.4%, Delta was - 0.0470, Gamma was 200003, Vega was 3.0820, Theta was - 12967, the theoretical leverage was 1,940.7143, and the actual leverage was 912136 [11] - For CF601P12400.CZC, the underlying contract price was 13585.00, the closing price was 2.00, the increase/decrease rate was - 83.3%, IV was 17.3%, Delta was - 0.0106, Gamma was 0.0001, Vega was 0.8840, Theta was - 0.5394, the theoretical leverage was 6,7925000, and the actual leverage was 72,0005 [11] Volatility and Strategy - Yesterday, the 10 - day HV of cotton was 6.4492, with a slight increase in volatility. The implied volatility of CF601 - C - 13400 was 6.7%, CF601 - P - 13000 was 11.4%, and CF601 - P - 12400 was 17.8% [11] - Yesterday, the position PCR of the Zhengzhou cotton main contract was 0.7339, and the trading volume PCR of the main contract was 0.6421. Today, the trading volumes of both call and put options have decreased. The option strategy is to wait and see [12][13] Group 5: Related Attachments - The report includes figures such as the domestic - foreign cotton price spread under 1% tariff, cotton basis for January, May, and September, CY05 - CF05 and CY01 - CF01 spreads, and CF9 - 1 and CF5 - 9 spreads [15][18][22][23]