Report Information - Industry: Cotton [1] - Date: July 31, 2025 [2] - Researchers: Yu Lanlan, Lin Zhenlei, Wang Haifeng, Hong Chenliang, Liu Youran [3] Market Review and Operation Suggestions - Zhengzhou cotton decreased in position and price. The latest 328 - grade cotton price index was 15,580 yuan/ton, down 29 yuan/ton from the previous trading day. Different regions and varieties of cotton had different sales price bases and quotes. The pure - cotton yarn market's quotes were stable, and the transaction price was approaching the quote. The all - cotton grey fabric market had weak demand, and the fabric price was stable and weak, with only partial improvement in some areas [7]. - Macroscopically, the negotiation on the suspension of tariff extension between China and the US was ongoing. In the international market, as of the week ending July 27, 2025, the good - to - excellent rate of US cotton was 55%, showing a slight decline. The budding, squaring rates of US cotton indicated a slower growth progress, and the outer market was oscillating within a range. In the domestic market, the actual sown area increased year - on - year, with an expectation of a bumper harvest. The downstream industry's demand was still weak, and the 9 - 1 spread continued to converge [8]. Industry News - As of July 24, the deliverable No. 2 cotton futures contracts on ICE were 21,617 bales. According to CFTC data, as of July 22, 2025, the net long - position ratio of ICE cotton futures funds was - 18.94%, up 3.97 percentage points week - on - week [9]. Data Overview - The report presented multiple data charts, including those related to China's cotton price index, cotton spot and futures prices, cotton basis changes, various spreads, cotton commercial and industrial inventories, and exchange rates such as the US dollar against the Chinese yuan and the Indian rupee [17][18][23]

Report Summary 1. Reported Industry - The report focuses on the cotton industry [1] 2. Core Viewpoints - In the international market, as of the week ending July 20th, the good-to-excellent rate of U.S. cotton was 57%, showing an upward trend, while the boll-setting rate was 33%, with a slower growth progress. The external market has limited driving force and maintains a range-bound oscillation. In the domestic market, the sown area this year has increased year-on-year, and there is still an expectation of a bumper harvest. The recent increase in cotton prices has led to an increase in the sales of old cotton from the 2023/24 season and a slight decrease in the basis price of new cotton from the 2024/25 season. The supply side exerts short-term pressure on cotton prices. Although yarn prices have gradually followed the increase in cotton prices, the finished yarn inventory has not continued to accumulate due to the increased production restrictions of textile enterprises in inland areas. The cotton import volume in June remained at a low level, and the contradiction of tight commercial cotton inventory in the 2024/25 season still exists. In the short term, the main contract oscillates and adjusts, the positions shift to the far-month contracts, and the 9-1 spread converges [8] 3. Summary by Directory 3.1 Market Review and Operation Suggestions - **Domestic Market**: Zhengzhou cotton oscillates and adjusts. The latest 328-grade cotton price index is 15,540 yuan/ton, a decrease of 40 yuan/ton from the previous trading day. The prices of different grades and regions of cotton vary, with the basis and fixed-price quotations showing different characteristics. The price of pure cotton yarn has increased, but the downstream demand is difficult to pick up significantly. Textile enterprises are still suffering large losses, and the operating rate has continued to decline due to high temperatures in inland areas. The market for pure cotton grey cloth has few inquiries, and most transactions are small and urgent orders [7] - **International Market**: As of the week ending July 20th, the good-to-excellent rate of U.S. cotton was 57%, up from 54% the previous week and 53% in the same period last year; the boll-setting rate was 33%, up from 23% the previous week, lower than 40% in the same period last year and in line with the five-year average. The growth progress is slow but the good-to-excellent rate is improving. The external market has limited driving force and maintains a range-bound oscillation [8] 3.2 Industry News - As of the week ending July 20th, the good-to-excellent rate of U.S. cotton was 57%, the boll-setting rate was 33%, and the budding rate was 71%. As of July 18th, 2025, the total commercial cotton inventory was 2.4575 million tons, a decrease of 148,800 tons or 5.71% from the previous week [9] 3.3 Data Overview - The report presents multiple data charts, including the China Cotton Price Index, cotton spot and futures prices, cotton basis changes, 9-1 spread, commercial and industrial cotton inventories, and the total number of warehouse receipts, among others [17][18][19]