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]