Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints of the Report - The fundamentals of Zhengzhou cotton have certain support. It is expected that the short - term trend of US cotton will be mainly oscillating and strengthening. One can consider building long positions on dips. For arbitrage and options, it is recommended to wait and see [6][7] Group 3: Summary by Relevant Catalogs First Part: Market Information - **Futures Disk Data**: For cotton futures, the CF01 contract closed at 15930 with no change, the CF05 contract closed at 15385, down 10, and the CF09 contract closed at 15515, down 15. For棉纱 futures, the CY01 contract had no trading, the CY05 contract closed at 21515, up 80, and the CY09 contract closed at 21685, up 75 [2] - **Spot Price Data**: CCIndex3128B was 16823 yuan/ton, up 78; Cot A was 80.10 cents/pound; FC Index:M: arrival price was 78.78, up 1.20; etc [2] - **Spread Data**: In cotton inter - period spreads, the 1 - 5 spread was 545, up 10; in 棉纱 inter - period spreads, the 1 - 5 spread was - 21515, down 80. For cross - variety spreads, CY01 - CF01 was (15930) with no change [2] Second Part: Market News and Views Cotton Market News - As of March 26, 2026, the cumulative picked seed cotton converted to lint cotton was 741.0 million tons, an increase of 73.4 million tons year - on - year; the cumulative sold lint cotton was 586.3 million tons, an increase of 174.6 million tons year - on - year [4] - On March 27, 2026, the spread between domestic and foreign cotton continued to converge. The domestic cotton production increase has been confirmed, and the peak season of "Golden March and Silver April" for downstream is approaching the end. The cotton yarn market trading is okay, but spinning mills are cautious about restocking due to poor spinning profits [4] - In February 2026, Pakistan's textile and clothing export value was 1.311 billion US dollars, a year - on - year decrease of 7.22% and a month - on - month decrease of 24.59%. From January to February 2026, the total textile and clothing export value was 3.05 billion US dollars, a year - on - year decrease of 1.59% [5] Trading Logic - In terms of fundamentals, the supply in the current year is basically determined, but there are rumors of production cuts in the new year, which support the futures price. The current commercial inventory is lower than last year, which is bullish for cotton prices. The downstream market is operating well, and yarn prices have been raised recently. However, the market is cautious about the future [6] Trading Strategy - **Unilateral**: It is expected that the short - term trend of US cotton will be mainly oscillating and strengthening. One can consider building long positions on dips for Zhengzhou cotton [7] - **Arbitrage**: Wait and see [7] - **Options**: Wait and see [7] Cotton Yarn Industry News - The trading of pure cotton yarn is okay, but it is weakening marginally. High - quality yarn prices are firm, while ordinary - quality yarn prices are stable or slightly decreasing. After the Tomb - sweeping Festival is an important observation point [8] - The sales of the all - cotton grey cloth market are gradually weakening. Except for home textile product orders, knitting and woven fabric orders are difficult to continue [8] Third Part: Relevant Attachments - The report provides charts such as the spread between domestic and foreign cotton prices under 1% tariff, the basis of cotton in January, May, and September, the spread between CY05 - CF05 and CY01 - CF01, and the spread between CF9 - 1 and CF5 - 9 [10][11][15]

1. Report Industry Investment Rating - No information provided in the report 2. Core Viewpoints of the Report - The issuance of 300,000 tons of import sliding - duty quotas is likely to benefit US cotton, narrowing the price gap between domestic and international cotton. The impact on domestic cotton supply is relatively small, and the price of Zhengzhou cotton may follow the upward trend of US cotton. Although cotton prices have declined due to the overall market atmosphere, the downward space is expected to be limited [6]. - In the short - term future, US cotton is expected to fluctuate and strengthen. The fundamentals of Zhengzhou cotton have not changed significantly. It is advisable to build long positions at low prices and not chase high prices. For arbitrage and options, it is recommended to wait and see [7]. 3. Summary According to Relevant Catalogs 3.1 Market Information - **Futures Market**: The closing prices of CF01, CF05, and CF09 contracts are 15,865, 15,340, and 15,465 respectively, with price increases of 85, 125, and 110. The trading volumes are 5,404, 351,511, and 169,007 hands respectively, with changes of - 86, + 108,565, and + 47,783 hands. The open interest is 22,681, 553,641, and 326,286, with changes of - 974, - 17,996, and + 5,316. For CY01, CY05, and CY09 contracts, the closing prices are 0, 21,670, and 21,670 respectively, with price increases of 0, 115, and 240. The trading volumes are 0, 14,593, and 28 hands respectively, and the open interest is 0, 12,972, and 67, with changes of 0, - 994, and + 5 [2]. - **Spot Market**: The price of CCIndex3128B is 16,711 yuan/ton, up 119 yuan; the price of IndexC32S CY is 22,180 yuan, up 30 yuan. The price of Cot A is 77.75 cents/pound, and the price of FCY IndexC33S is 22,528 yuan, up 12 yuan. The price of polyester staple fiber is 7,450 yuan, up 70 yuan; the price of pure polyester yarn T32S is 11,400 yuan, unchanged. The price of viscose staple fiber is 13,200 yuan, up 50 yuan; the price of viscose yarn R30S is 17,400 yuan, unchanged [2]. - **Price Spreads**: In the cotton inter - month spreads, the 1 - 5 spread is 525, down 40; the 5 - 9 spread is - 125, up 15; the 9 - 1 spread is - 400, up 25. In the cotton yarn inter - month spreads, the 1 - 5 spread is - 21,670, down 115; the 5 - 9 spread is 0, down 125; the 9 - 1 spread is 21,670, up 240. In the cross - variety spreads, CY01 - CF01 is (15,865), down 85; CY05 - CF05 is 6,330, down 10; CY09 - CF09 is 6,205, up 130. The 1% tariff - based domestic - foreign cotton price gap is 2,688, down 547; the sliding - duty domestic - foreign cotton price gap is - 1,342, down 184; the domestic - foreign cotton yarn price gap is - 348, up 18 [2]. 3.2 Market News and Views 3.2.1 Cotton Market News - On March 25, 2026, the road freight price index for Xinjiang - bound cotton was 0.1561 yuan/ton·km, a 0.06% decrease from the previous day. Transport demand decreased, and freight capacity was relatively sufficient, resulting in a slight decline in the freight price index. In the short - term, the index will fluctuate within a narrow range [4]. - In February 2026, Pakistan's textile and clothing export value reached 1.311 billion US dollars, a year - on - year decrease of 7.22% and a month - on - month decrease of 24.59%. The export volume of cotton yarn was 30,900 tons, a year - on - year increase of 56.97% and a month - on - month increase of 1.52%. The export volume of cotton cloth was 259 million tons, a year - on - year decrease of 9.2% and a month - on - month decrease of 19.37% [4]. - In 2026, from January to February, China's cumulative import volume of cotton cloth was 61 million meters, a year - on - year increase of 7.76%; the cumulative import weight was 4,600 tons, a year - on - year decrease of 29.63%; the cumulative import value was 29 million US dollars, a year - on - year decrease of 38.65% [5]. 3.2.2 Trading Logic - The issuance of 300,000 tons of import sliding - duty quotas, which is only 100,000 tons more than last year, has a relatively small impact on domestic supply. However, the issuance time is earlier, leaving room for future policies. It is expected to benefit US cotton, narrowing the domestic - foreign price gap, and Zhengzhou cotton prices may follow the upward trend of US cotton. Although cotton prices have declined due to the impact of the overall market atmosphere, the downward space is limited [6]. 3.2.3 Trading Strategies - **Unilateral**: In the short - term future, US cotton is expected to fluctuate and strengthen. The fundamentals of Zhengzhou cotton have not changed significantly. It is advisable to build long positions at low prices and not chase high prices. - **Arbitrage**: Wait and see. - **Options**: Wait and see [7]. 3.2.4 Cotton Yarn Industry News - The trading of pure cotton yarn is average. Spinning mills mainly execute previous orders, with few new orders, and inventory has increased. Downstream weavers and traders are cautious, mainly making purchases based on rigid demand. Prices are stable with a downward trend, the quantity of high - priced spot goods is decreasing, some traders are offering discounts, and yarn mills' quotes remain stable. - The market atmosphere has weakened recently, and the production and sales of all - cotton grey fabric have also declined. Due to the sluggish overseas economy, the number of overseas orders has decreased. The number of new domestic orders is also scarce, and in - production orders are gradually shrinking. It is expected that the number of orders will continue to decrease in the future, and price negotiations for grey fabric have increased [8]. 3.3 Relevant Attachments - The report provides multiple charts, including the 1% tariff - based domestic - foreign cotton price gap, cotton 1 - month, 5 - month, and 9 - month basis, CY05 - CF05 and CY01 - CF01 spreads, and CF9 - 1 and CF5 - 9 spreads [9][10][11][13][14][15][16][17][19][20]

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core View of the Report - The additional issuance of 300,000 tons of import processing trade sliding - scale tariff quotas for cotton is likely to be beneficial to US cotton, leading to a narrowing of the price difference between domestic and foreign cotton. The impact on domestic cotton supply is relatively small, and the price of Zhengzhou cotton may follow the upward trend of US cotton [5]. - In the short - term, US cotton is expected to fluctuate strongly, and Zhengzhou cotton shows a strong technical trend. It is advisable to consider building long positions on dips instead of chasing high prices. For arbitrage and options, it is recommended to wait and see [6][7][11]. Group 3: Summary by Directory First Part: Market Information - **Futures Market**: The closing prices, price changes, trading volumes, and open interest of various cotton and cotton yarn futures contracts are presented. For example, the CF01 contract closed at 15,880 with a price increase of 75, and the CY05 contract closed at 21,485 with a price decrease of 80 [2]. - **Spot Market**: The prices and price changes of various cotton and cotton yarn spot products are provided. For instance, the CCIndex3128B was priced at 16,884 yuan/ton with a price increase of 36, and the CY IndexC32S was priced at 22,000 with no price change [2]. - **Price Spreads**: The spreads and their changes in cotton and cotton yarn across different periods and varieties are given. For example, the spread between the 1 - month and 5 - month cotton contracts was 400 with a price increase of 10 [2]. Second Part: Market News and Views - **Cotton Market News** - On March 16, 2026, the road transportation price index of Xinjiang - bound cotton decreased by 1.69% month - on - month. It is expected to show a narrow - range fluctuation in the short - term [4]. - From January to February, the total retail sales of consumer goods reached 8.6079 trillion yuan, a year - on - year increase of 2.8%. The retail sales of clothing, footwear, and textile products were 283.1 billion yuan, a year - on - year increase of 10.4% [4]. - The total amount of sliding - scale tariff processing trade quotas for cotton imports in 2026 is 300,000 tons, and they are issued on a contract - based application basis [4]. - **Trading Logic**: The additional issuance of 300,000 tons of sliding - scale tariff quotas is beneficial to US cotton. The impact on domestic cotton supply is relatively small, and Zhengzhou cotton may follow the upward trend of US cotton [5]. - **Trading Strategy** - **Unilateral**: It is expected that US cotton will fluctuate strongly in the short - term, and Zhengzhou cotton shows a strong technical trend. Consider building long positions on dips instead of chasing high prices [6]. - **Arbitrage**: Wait and see [6]. - **Options**: Wait and see [7]. - **Cotton Yarn Industry News** - The trading in the pure cotton yarn market is good, with high - and medium - count yarns selling well, while low - count yarns and rotor - spun yarns are weak. Downstream fabric mills have few long - term orders, but due to unstable factors such as geopolitical and oil prices, they are more willing to purchase raw materials. The overall price is stable, and inventory is decreasing. Attention should be paid to the sustainability of orders in April and the trend of Zhengzhou cotton [7]. - The market of all - cotton grey fabrics continues, and the overall quotation is stable. The in - machine orders of fabric mills can be continuously produced, and the order time has been extended. The current operating rate of fabric mills is 60% - 70%, and the inventory of grey fabrics is about 25 days. It is expected that the inventory will continue to decrease in March, but the decline rate will slow down [7]. Third Part: Options - **Option Data**: The data of several cotton option contracts, including the closing price, price change rate, implied volatility, etc., are presented. For example, the CF605C14600.CZC contract closed at 334.00 with a price decrease of 16.9% [9]. - **Volatility**: The 60 - day HV of cotton is 9.2812, and the implied volatilities of several option contracts are also provided [9]. - **Option Strategy**: Wait and see [11]. Fourth Part: Related Attachments - The report provides multiple figures, including the price difference between domestic and foreign cotton under 1% tariff, the basis of cotton in January, May, and September, the spread between CY05 - CF05 and CY01 - CF01, and the spreads of CF9 - 1 and CF5 - 9 [13][16][20][21].

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core View of the Report - The current fundamentals of cotton provide some support. On the demand side, there are expectations for the "Golden March and Silver April" as downstream industries resume work, and cotton sales progress is fast, at a high level in the same period over the years. The USDA's annual report has lowered the global cotton production forecast by 3%, with a reduction in US and Chinese production by 9%. The supply - demand situation is expected to be slightly tight, and there may be a tight balance if consumption continues to increase. The US cotton signing situation has also improved. It is expected that cotton will still have some support in the short term, and investors can consider building long positions at low prices but not chasing high prices [6]. - For the cotton market, it is expected that the short - term trend of US cotton will be mostly range - bound, and the technical performance of Zhengzhou cotton is strong. For trading strategies, in the single - side trading, investors can consider building long positions at low prices and not chasing high; in arbitrage and options trading, it is recommended to wait and see [7][8][9]. Group 3: Summary by Relevant Catalog First Part: Market Information - **Futures Market**: The closing prices of CF01, CF05, and CF09 contracts are 15875, 15545, and 15595 respectively, with price increases of 100, 30, and 65. Their trading volumes are 3,239, 536,896, and 145,167 hands respectively, showing decreases of 2667, 153899, and 49194 hands compared with the previous period. The open interest of CF01, CF05, and CF09 contracts is 16,007, 741,203, and 237,471 respectively, with changes of 678, - 2473, and 7727. For CY01, CY05, and CY09 contracts, the closing prices are 0, 21735, and 21575 respectively. The trading volume of CY01 is 0, while CY05 and CY09 have trading volumes of 16137 and 34 hands respectively, with decreases of 4405 and 9 hands. The open interest of CY01 is 0, and CY05 and CY09 have open interests of 14724 and 63 respectively, with changes of - 248 and 2 [2]. - **Spot Market**: The price of CCIndex3128B is 16848 yuan/ton, up 115; Cot A is 75.75 cents/pound; the arrival price of (FC Index):M is 73.98, up 0.70; the price of polyester staple fiber is 7450, up 70; the price of viscose staple fiber is 12900, up 50. The prices of IndexC32S CY, Indian S - 6, and pure polyester yarn T32S remain unchanged, and the price of viscose yarn R30S is also unchanged [2]. - **Price Difference**: In cotton inter - month spreads, the 1 - 5 spread is 330, up 70; the 5 - 9 spread is - 50, down 35; the 9 - 1 spread is - 280, down 35. In yarn inter - month spreads, the 1 - 5 spread is - 21735, down 155; the 5 - 9 spread is 160, up 20; the 9 - 1 spread is 21575, up 135. In cross - variety spreads, CY01 - CF01 is (15875), down 100; CY05 - CF05 is 6190, up 125; CY09 - CF09 is 5980, up 70. The 1% tariff internal - external cotton spread is 3903, up 315; the sliding - scale internal - external cotton spread is 2906, up 261; the internal - external yarn spread is 5, down 41 [2]. Second Part: Market News and Views - **Cotton Market News**: On March 12, 2026, the road transportation price index of Xinjiang - outbound cotton was 0.1593 yuan/ton·km, up 1.59% month - on - month. Due to increased transportation demand and relatively insufficient transportation capacity resources, the index rose slightly, and it is expected to show a narrow - range fluctuation in the short term. In January 2026, Vietnam's cotton textile output was 0.88 billion square meters, up 1.51% year - on - year and down 7.259% month - on - month; clothing output was 5.49 billion pieces, up 20.3% year - on - year and down 7.02% month - on - month. The decline in textile and clothing output in January was mainly due to the Spring Festival holiday, with enterprises arranging employees' return home in advance and reducing production line speed. In December 2025/26, India's cotton yarn (HS:5205) export volume was 10.14 tons, up 5.01% year - on - year and 11.64% month - on - month. From August to December 2025, India's cotton yarn export volume was 45.6 tons, with 19.48 tons exported to Bangladesh (down 117.06% year - on - year, accounting for 42.94%) and 7.42 tons exported to China (up 94.76% year - on - year, accounting for 16.35%). In 2025, India's cumulative cotton yarn export volume was 108.19 tons, up 0.18% year - on - year [4][5]. - **Trading Logic**: The current cotton fundamentals are supportive. Demand is expected to improve with the resumption of downstream production, and cotton sales are progressing rapidly. The USDA's report has lowered global cotton production, and the supply - demand situation may become tighter. The US cotton signing situation has also improved. It is expected that cotton will have short - term support, and investors can build long positions at low prices but not chase high [6]. - **Trading Strategy**: In single - side trading, it is expected that the short - term trend of US cotton will be range - bound, and the technical performance of Zhengzhou cotton is strong. Investors can consider building long positions at low prices and not chasing high. In arbitrage and options trading, it is recommended to wait and see [7][8][9]. - **Cotton Yarn Industry News**: The overall quotation of the pure - cotton yarn market is stable with a slight increase. Low - count yarn and rotor - spun yarn face substitution pressure from imported yarn, and their sales are slightly sluggish. Although cotton yarn sales are good and spinning mills' inventories have decreased, due to the rising price of raw material cotton, the increase in yarn prices cannot fully cover the cost increase, and some spinning mills with low cotton inventories still face profit challenges. The production and sales of all - cotton grey fabrics are stable, with sufficient inventory of conventional varieties and continuous sales. The inquiry situation in the regional market and factories continues, and the seasonal orders are acceptable. Currently, the on - machine orders are sufficient, but the follow - up new orders are insufficient. Only the orders for thin fabrics in export sales are in good demand, and clothing orders are average. Currently, fabric mills maintain procurement based on orders, and their cotton yarn inventory is maintained at about 10 - 15 days [10]. Third Part: Options - **Option Contract Data**: On January 19, 2026, for the option contract CF605C14600.CZC, the underlying contract price was 14545.00, the closing price was 334.00, down 16.9%, with an implied volatility of 13.3%. For CF605C14200.CZC, the underlying contract price was 14545.00, the closing price was 511.00, down 17.7%, with an implied volatility of 11.3%. For CF605P13800.CZC, the underlying contract price was 14545.00, the closing price was 60.00, down 34.1%, with an implied volatility of 11.2%. The 60 - day HV of cotton is 9.2812, and the volatility has increased slightly compared with the previous day [12]. - **Option Strategy Suggestion**: The previous day, the position PCR of the main contract of Zhengzhou cotton was 0.8667, and the trading volume PCR of the main contract was 0.4688. The trading volumes of both call and put options have decreased today. It is recommended to wait and see in options trading [13][14]. Fourth Part: Related Attachments - The report provides multiple charts, including the internal - external cotton price difference under 1% tariff, cotton basis for January, May, and September, CY05 - CF05 and CY01 - CF01 spreads, and CF9 - 1 and CF5 - 9 spreads [15][19][25][27]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The cotton fundamentals have some support, and it is advisable to consider building long positions on dips. The US cotton is expected to move in a range in the short - term, while the technical performance of Zhengzhou cotton is strong. It is advisable to build long positions on dips rather than chase the highs. For arbitrage and options, the recommendation is to wait and see [7][8][9] Summary by Directory First Part: Market Information - **Futures Market**: The closing prices, price changes, trading volumes, and open interest of various cotton (CF) and cotton yarn (CY) contracts are presented. For example, the CF01 contract closed at 15640 with a price increase of 10, and the trading volume decreased by 1164 to 3,324 lots [2] - **Spot Market**: The prices and price changes of various cotton and cotton yarn spot products are provided. For instance, the CCIndex3128B was 16591 yuan/ton with a decrease of 40, and the CY IndexC32S was 21920 with no change [2] - **Spreads**: Different types of spreads are listed, including cotton and cotton - yarn inter - month spreads and cross - variety spreads. The 1 - 5 month spread of cotton was 385 with a decrease of 20 [2] Second Part: Market News and Views Cotton Market News - **Inventory in Zhangjiagang**: As of March 2, 2026, the total cotton inventory in Zhangjiagang Free Trade Zone was 4.70 million tons, a year - on - year decrease of 0.16%. The inventory increased significantly due to more in - bound and less out - bound shipments before the Spring Festival, mainly with Brazilian cotton [5] - **US Cotton Inspection**: As of February 27, 2026, the cumulative inspection volume of US upland cotton + Pima cotton was 3.0387 billion tons, accounting for 100.3% of the annual US cotton production forecast, a year - on - year decrease of 4%. The final inspection volume is expected to be around 3.05 - 3.07 billion tons [6] - **CFTC Data**: As of February 24, 2026, the net long position ratio of ICE cotton futures funds was - 20.66% (a week - on - week increase of 3.2 percentage points) [6] Trading Logic - The global cotton production has decreased by 3% according to the previous USDA annual report. The overall supply is expected to be 2525, while consumption is 2614, showing a relatively tight balance. If consumption continues to increase, a tight - balance situation may occur [7] Trading Strategy - **Single - side**: It is expected that the US cotton will move in a range in the short - term, and Zhengzhou cotton shows strong technical performance. It is advisable to build long positions on dips and not chase the highs [8] - **Arbitrage**: Wait and see [9] - **Options**: Wait and see [10] Cotton Yarn Industry News - **Cotton Yarn Market**: The trading in the pure cotton yarn market is light, and downstream orders are unclear. The inventory has decreased, and manufacturers are cautious and waiting [12] - **Cotton Grey Cloth Market**: The overall trading atmosphere of all - cotton grey cloth is still insufficient, with few new orders for weavers. Some thin fabric re - orders have been confirmed, while others have not improved much [12] Third Part: Options - **Option Contract Data**: The data of several cotton option contracts are presented, including the closing price, price change rate, implied volatility, and other indicators. For example, the CF605C14600.CZC contract closed at 334.00, with a price change rate of - 16.9% and an implied volatility of 13.3% [14] - **Volatility**: The 60 - day HV of cotton is 9.2812, with a slight increase compared to the previous day [14] - **Option Strategy**: The PCR of the main contract's open interest of Zhengzhou cotton was 0.8667, and the PCR of the main contract's trading volume was 0.4688. The trading volumes of both call and put options decreased. The recommendation is to wait and see [15][16] Fourth Part: Related Attachments - Multiple charts are provided, including the 1% tariff - based domestic and international cotton price difference, cotton 1 - month, 5 - month, and 9 - month basis, CY - CF spreads, and CF inter - month spreads [17][21][26]

Group 1: Report Overview - The report is an agricultural product research report focusing on cotton and cotton yarn, dated February 24, 2026 [1] Group 2: Market Information Futures Market - CF01 contract closed at 15,140, down 70, with a trading volume of 472 lots (down 452) and an open interest of 5,483 lots (up 84) [2] - CF05 contract closed at 14,610, down 70, with a trading volume of 246,422 lots (down 13,325) and an open interest of 700,704 lots (down 270) [2] - CF09 contract closed at 14,735, down 70, with a trading volume of 55,110 lots (down 3,624) and an open interest of 169,643 lots (up 4,673) [2] - CY01 contract closed at 0, with no change, no trading volume, and no open interest [2] - CY05 contract closed at 20,360, down 45, with a trading volume of 6,709 lots (down 536) and an open interest of 11,525 lots (up 360) [2] - CY09 contract closed at 20,600, down 25, with a trading volume of 1 lot (down 4) and an open interest of 32 lots (up 1) [2] Spot Market - CCIndex3128B was priced at 15,967 yuan/ton, down 45 [2] - Cot A was priced at 72.80 cents/pound, compared to 73.20 previously [2] - FC Index:M: arrival price was 71.46, down 0.08 [2] - Polyester staple fiber was priced at 7,450 yuan/ton, up 70 [2] - Viscose staple fiber was priced at 12,600 yuan/ton, with no change [2] Price Spreads - Cotton inter - month spreads: 1 - 5 spread was 530, no change; 5 - 9 spread was - 125, no change; 9 - 1 spread was - 405, no change [2] - Cotton yarn inter - month spreads: 1 - 5 spread was - 20,360, up 45; 5 - 9 spread was - 240, down 20; 9 - 1 spread was 20,600, down 25 [2] - Cross - variety spreads: CY01 - CF01 was - 15,140, up 70; CY05 - CF05 was 5,750, up 25; CY09 - CF09 was 5,865, up 45 [2] - Domestic - foreign spreads: 1% tariff domestic - foreign cotton spread was 2,955, down 15; sliding - scale domestic - foreign cotton spread was 1,991, down 24; domestic - foreign yarn spread was 397, up 25 [2] Group 3: Market News and Views Cotton Market News - As of February 17, the drought index in the main U.S. cotton - producing areas (93.0%) was 212, up 2 month - on - month and 86 year - on - year. The drought index in Texas was 232, up 2 month - on - month and 66 year - on - year. Drought is expected to continue from February to April, intensify in the Midwest, and ease in the eastern regions [4] - As of February 21, Brazil's 2025/26 cotton planting was 99.9% complete, up 3.4 percentage points month - on - month, flat year - on - year, and basically in line with the three - year average [4] - As of the week of February 20, 2026, the cumulative inspection volume of U.S. upland cotton + Pima cotton was 3.0275 million tons, accounting for 99.9% of the estimated annual U.S. cotton output, 5% slower year - on - year. The inspection volume of U.S. upland cotton was 2.9414 million tons, with an inspection progress of 99.9%, down 4% year - on - year; the inspection volume of Pima cotton was 86,100 tons, with an inspection progress of 101.9%, down 16% year - on - year. The weekly deliverable ratio was 77.2%, and the quarterly deliverable ratio was 81.7%, 1.1 percentage points higher year - on - year. The final listed volume is expected to be around 3.03 - 3.05 million tons [5] Trading Logic - The total open interest on the futures market increased by more than 70,000 lots. The overall macro - sentiment during the holiday was positive, with gold, silver, non - ferrous metals, and crude oil rising, which supported cotton prices. Fundamentally, there are no obvious negative factors. According to the USDA annual report, the global cotton output was reduced by 3% (U.S. total output was reduced, and China's was reduced by 9%). The supply is expected to be 25.25 million tons, and consumption is expected to be 26.14 million tons, showing a relatively tight balance. If future consumption continues to increase, there may be a tight - balance situation. As of February 12, U.S. cotton contracts were 105,700 tons, an increase of 53,300 tons month - on - month, and the cumulative contracts were 1.9279 million tons, 7 percentage points lower year - on - year. The technical chart of the current futures market has broken through the previous high, which may attract speculative funds. The futures market is expected to maintain an upward trend [6] Trading Strategies - Unilateral: It is expected that the short - term trend of U.S. cotton will be mainly range - bound, while the technical performance of Zhengzhou cotton is strong. Consider building long positions on dips [7] - Arbitrage: Hold off [8] - Options: Hold off [9] Cotton Yarn Industry News - The trading in the pure cotton yarn market has basically stagnated, with only a small amount of goods being sold in Xinjiang. Some spinning mills have raised their quotes, and inland spinning mills have started to take holidays [11] - As the Spring Festival holiday approaches, the market for all - cotton grey fabric has basically stopped, and traders' stores have closed as they return home. Most fabric mills have also stopped quoting prices, and prices are temporarily stable [11] Group 4: Options Option Data - On January 19, 2026, for the CF605C14600.CZC option, the underlying contract price was 14,545.00, the closing price was 334.00, down 16.9%, with an implied volatility of 13.3% [13] - For the CF605C14200.CZC option, the underlying contract price was 14,545.00, the closing price was 511.00, down 17.7%, with an implied volatility of 11.3% [13] - For the CF605P13800.CZC option, the underlying contract price was 14,545.00, the closing price was 60.00, down 34.1%, with an implied volatility of 11.2% [13] Volatility and Strategy - The 60 - day HV of cotton yesterday was 9.2812, with a slight increase in volatility. The implied volatility of CF605 - C - 14600 was 13.3%, CF605 - C - 14200 was 11.3%, and CF605 - P - 13800 was 11.2% [13] - Yesterday, the PCR of the main Zhengzhou cotton contract's open interest was 0.8667, and the PCR of the main contract's trading volume was 0.4688. The trading volumes of both call and put options decreased today. The option strategy is to hold off [14][15]

1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core View of the Report - The cotton fundamentals remain strong with an upward trend in the long - term. It is recommended to build long positions on dips. The expected reduction in Xinjiang's cotton planting area in 2026 and the upcoming textile projects in Xinjiang are factors influencing the market [6]. - In the short - term, both US cotton and Zhengzhou cotton are likely to trade in a range. The trading strategies suggest building long positions on dips for the unilateral trade, and adopting a wait - and - see approach for arbitrage and options [7]. 3. Summary by Relevant Catalogs 3.1 Market Information - **Futures Market**: The CF01, CF05, and CF09 contracts of cotton all decreased by 70, while the CY05 and CY09 contracts of cotton yarn decreased by 45 and 25 respectively. The CY01 contract had no trading volume. The trading volume of most contracts decreased, and the open interest of some contracts changed. For example, the open interest of the CF01 contract increased by 84, and that of the CF05 contract decreased by 270 [2]. - **Spot Market**: The CCIndex3128B price was 15,967 yuan/ton, down 45; the CY IndexC32S price was 21,455 yuan, unchanged. The prices of other varieties such as Cot A, FCY IndexC33S, etc., also had corresponding changes [2]. - **Spreads**: In the cotton and cotton yarn markets, there were changes in cross - period spreads and cross - variety spreads. For example, the 1 - 5 month spread of cotton was 530, unchanged; the CY05 - CF05 spread was 5,750, up 25 [2]. 3.2 Market News and Views Cotton Market News - As of January 22, 2026, the sowing progress of Brazil's 2025/26 cotton was 55.5%. As of February 6, the planting was 88.1% complete, up 9.5 percentage points month - on - month, 0.7 percentage points faster year - on - year, and 3.6 percentage points slower than the three - year average. The planting progress in Mato Grosso and Bahia is in the middle - late stage [4]. - As of the week of February 6, 2026, the cumulative inspection volume of US upland cotton + Pima cotton was 2.9894 million tons, accounting for 98.7% of the estimated annual US cotton output, 6% slower year - on - year. The inspection progress of upland cotton was 98.6%, down 5% year - on - year; that of Pima cotton was 99.5%, 17% slower year - on - year. The weekly deliverable ratio was 78.1%, and the quarterly deliverable ratio was 81.8%, 1.2 percentage points higher year - on - year [5]. Trading Logic - According to the National Bureau of Statistics, Xinjiang's cotton planting area in 2025 was 38.87 million mu. It is expected to decrease by 2.66 million mu to 36.21 million mu in 2026, a reduction of 7%. Some large - scale planters have received relevant notices. Several large textile projects are expected to be launched in Xinjiang this year, which is beneficial to cotton consumption [6]. Trading Strategies - **Unilateral**: It is expected that US cotton will trade in a range in the short - term, and Zhengzhou cotton will also trade in a range. It is advisable to build long positions on dips. - **Arbitrage**: Adopt a wait - and - see approach. - **Options**: Adopt a wait - and - see approach [7]. Cotton Yarn Industry News - The trading in the pure cotton yarn market has become quiet, with more spinning mills on holiday. Yarn prices are generally stable, and some spinning mills have slightly increased their quotes. - The full - cotton grey fabric market is getting more festive, and the market remains sluggish. Traders are gradually returning home. Some weaving mills report that post - holiday orders are fewer than in previous years. Weaving mills continue to stop production and reduce loads, and there is expected to be no significant change before the Spring Festival [9]. 3.3 Options - **Option Contract Information**: On January 19, 2026, for options such as CF605C14600.CZC, CF605C14200.CZC, and CF605P13800.CZC, the closing prices decreased by 16.9%, 17.7%, and 34.1% respectively, and the implied volatilities were 13.3%, 11.3%, and 11.2% respectively [11]. - **Volatility and Volume PCR**: The 60 - day HV of cotton yesterday was 9.2812, with a slight increase in volatility. The PCR of the main contract of Zhengzhou cotton yesterday was 0.8667, and the volume PCR was 0.4688. The trading volumes of both call and put options decreased today [11][12]. - **Option Strategy**: Adopt a wait - and - see approach [13].

1. Report Industry Investment Rating - No information provided in the report 2. Core View of the Report - The cotton fundamentals remain strong with upward potential in the long - term. It is recommended to build long positions on dips. The short - term trend of US cotton and Zhengzhou cotton is likely to be range - bound [5][6] 3. Summary by Directory 3.1 Market Information - **Futures Disk**: The closing prices of CF01, CF05, and CF09 contracts decreased by 70; CY05 decreased by 45 and CY09 decreased by 25. The trading volume of most contracts decreased, and the open interest of some contracts changed. For example, the trading volume of CF05 decreased by 13,325, and the open interest decreased by 270 [2] - **Spot Price**: CCIndex3128B decreased by 45 to 15,967 yuan/ton; Cot A was 72.80 cents/pound; FC Index:M: to - port price decreased by 0.08 to 71.46; some other spot prices remained unchanged [2] - **Price Difference**: Cotton and棉纱 inter - month spreads and cross - variety spreads showed different changes. For example, the 1 - 5 month spread of cotton was 530 with no change, and the CY05 - CF05 spread increased by 25 to 5,750 [2] 3.2 Market News and Views - **Cotton Market News**: In 2026, the national cotton planting intention area is 46.479 million mu, a year - on - year decrease of 827,000 mu (1.7%); as of the end of January, the in - stock industrial cotton inventory of textile enterprises was 1.001 million tons, an increase of 17,200 tons from the end of last month; as of February 5, the inventory of ICE deliverable No. 2 cotton futures contracts was 74,997 bales, compared with 47,653 bales the previous day [4] - **Trading Logic**: There are news about the reduction of cotton planting area in Xinjiang. It is expected to decrease by 2.66 million mu to 36.21 million mu in 2026, a 7% decrease. Some large planters have received relevant notices. Several large textile projects are expected to be launched in Xinjiang, which is beneficial to cotton consumption [5] - **Trading Strategy**: In the short - term, US cotton and Zhengzhou cotton are likely to be range - bound. It is advisable to build long positions on dips. For arbitrage and options, it is recommended to wait and see [6][8] - **Cotton Yarn Industry News**: Zhengzhou cotton fluctuates. The trading in the pure cotton yarn market is light. Xinjiang maintains a certain level of sales, while inland yarn mills are in the process of finishing work, mainly for stocking and fulfilling previous orders. Yarn mills are starting to take holidays one after another, and the quotes remain stable. The shipment of the all - cotton grey fabric market is weak, and most weaving factories are on holiday. It is expected that there will be no significant actions in the market before the Spring Festival, and weaving factories will adjust grey fabric prices according to the market situation after the festival, with a cautious attitude towards the future market [7][10] 3.3 Options - **Option Data**: The closing prices of some cotton options decreased, such as CF605C14600.CZC decreased by 16.9%, and the implied volatilities of different options were different. For example, the implied volatility of CF605 - C - 14600 was 13.3% [12] - **Volatility and Strategy**: The 60 - day HV of cotton increased slightly compared with the previous day. The PCR of the main contract of Zhengzhou cotton decreased. It is recommended to wait and see for options [12][13][14] 3.4 Related Attachments - The report provides multiple charts, including the 1% tariff - based domestic and foreign cotton price difference, cotton 1 - month, 5 - month, and 9 - month basis, CY05 - CF05 and CY01 - CF01 spreads, and CF9 - 1 and CF5 - 9 spreads [15][20][25]

Group 1: Market Information - Futures: CF01 closed at 15155 with a 10-point increase, CF05 at 14535 (10-point increase), CF09 at 14705 (5-point increase), CY05 at 20515 (unchanged), and CY09 at 20625 (55-point decrease). CY01 had no trading [2]. - Spot: CCIndex3128B was 15819 yuan/ton (-61), Cot A was 74.80 cents/pound, and various other spot prices were provided with their respective changes [2]. - Spreads: Cotton and棉纱跨期 spreads, as well as跨品种 and内外价差, were presented with their corresponding values and changes [2]. Group 2: Market News and Views Cotton Market - On January 21, 2026, the Xinjiang cotton road transport price index was 0.1678 yuan/ton·km, up 0.96% from the previous day. It's expected to fluctuate within a narrow range in the short term [4]. - As of January 15, 2026, Pakistan's 2025/26 new cotton market volume reached 85.1 tons, almost the same as the previous year. Textile mills purchased 75 tons (down 1%), and unsold new cotton was 7.4 tons (down 5%) [4]. - In December 2025, the export of all-cotton grey cloth was 48.85 million meters (up 9.3% year-on-year), and the export value was $45.68 million (up 5.3%). For the whole year of 2025, the cumulative export was 639 million meters (up 23.17%) and the cumulative export value was $613 million (up 9.34%) [5]. Trading Logic - Cotton sales are progressing quickly and are at a high level compared to previous years. Downstream demand for stocking is increasing, but considering the approaching Spring Festival, the market is expected to fluctuate within a range in the short term [6]. Trading Strategy - Unilateral: Both US cotton and Zhengzhou cotton are expected to fluctuate within a range in the short term. - Arbitrage: Hold off on trading. - Options: Hold off on trading [7]. Cotton Yarn Industry - The domestic pure cotton yarn market is sluggish overall, with a differentiation between product categories. High-count combed yarns are in high demand, while low-count yarn prices are stable or decreasing, and regular yarn orders are mediocre [8]. - The all-cotton grey cloth market has continuous transactions, mainly small and scattered orders. Some areas are starting to collect payments, and factories are increasing production to fulfill orders [8]. Group 3: Options - Volatility: On January 19, 2026, the 60-day HV of cotton was 9.2812, slightly higher than the previous day. The implied volatilities of CF605-C-14600, CF605-C-14200, and CF605-P-13800 were 13.3%, 11.3%, and 11.2% respectively [10]. - Strategy: Hold off on trading options [12]. Group 4: Related Attachments - The report includes charts showing various cotton price spreads and basis, such as the 1% tariff on the domestic and international cotton price spread, cotton 1st, 5th, and 9th month basis, CY05-CF05 and CY01-CF01 spreads, and CF9-1 and CF5-9 spreads [14][17][21]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The fundamentals of cotton remain strong due to supportive market factors, and the recent sharp correction in cotton prices is expected to result in short - term oscillations with a slightly upward bias [6]. - It is recommended to consider buying on dips for Zhengzhou cotton, while maintaining a wait - and - see approach for both arbitrage and options strategies [8][9][10]. 3. Summary by Directory First Part: Market Information - **Futures Market**: The closing prices of CF01, CF05, and CF09 contracts increased by 50, 50, and 15 respectively, while the CY01 contract decreased by 395. The trading volumes of most contracts decreased, and the open interest of some contracts changed. For example, the trading volume of the CF05 contract decreased by 207,513, and its open interest increased by 5,210 [2]. - **Spot Market**: The CCIndex3128B price increased by 113 to 15,970 yuan/ton, and the Cot A price was 75.00 cents/pound. The prices of some other spot products also had corresponding changes [2]. - **Spreads**: In the cotton and棉纱 markets, there were various spread changes. For instance, the 1 - 5 month spread of cotton was 40 with no change, and the 1 - 5 month spread of 棉纱 was - 1,020, a decrease of 440 [2]. Second Part: Market News and Views - **Cotton Market News** - In Xinjiang, the number of ginned cotton factories that ended processing increased last week, and the processing volume continued to decline. The domestic lint market price has been rising during the acquisition and processing period this year, and processing enterprises generally made profits through the "buy - and - sell" model. The average purchase price of inland seed cotton last week was 6.78 yuan/kg, a decrease of 0.17 yuan/kg from the previous week. As of January 11, 1,096 cotton processing enterprises had conducted notarized inspections, with a total inspection weight of 6.784 million tons [4]. - The average temperature in the main cotton - producing areas of the US decreased, and the precipitation remained low. The drought in the main cotton - producing areas of the US is expected to intensify in the first quarter [5]. - In December 2025, Vietnam's textile and clothing imports and exports performed well, with a 47% month - on - month increase in cotton imports [5]. - **Trading Logic**: The cotton sales progress is fast, and the downstream stocking willingness has increased. The fundamentals of cotton remain strong, and the short - term trend is expected to be slightly upward [6]. - **Trading Strategies** - For the single - side strategy, it is expected that the US cotton will oscillate within a range in the short term, and it is advisable to consider buying Zhengzhou cotton on dips [8]. - For the arbitrage and options strategies, a wait - and - see approach is recommended [9][10]. - **Cotton Yarn Industry News** - The overall price of pure cotton yarn is stable with a slight decline. The high - count combed yarn price is firm, but the overall market trading atmosphere is still light. The prices of some yarn products are provided, such as the OEC21S at about 16,600 yuan/ton [10]. - The all - cotton grey fabric market has partial stocking. Most manufacturers believe that there will be no significant improvement this year. The prices of regular varieties are stable, and the dyeing factories plan to start their holidays at the end of January, while some weaving factories will start their holidays in mid - January [11]. Third Part: Options - **Volatility**: The 10 - day HV of cotton increased slightly yesterday. The implied volatilities of CF601 - C - 13400, CF601 - P - 13000, and CF601 - P - 12400 were 6.7%, 11.4%, and 17.8% respectively [13]. - **Options Strategy**: The PCR of the main contract of Zhengzhou cotton decreased, and a wait - and - see approach is recommended for options [14][15]. Fourth Part: Related Attachments - The report provides multiple charts, including the 1% tariff - based price difference between domestic and international cotton markets, cotton basis for different months, and the price difference between cotton yarn and cotton for different contracts [17][20][24][25].