Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The supply - side acquisition progress of cotton has entered a peak, with acquisition prices basically stable and slightly rising recently, around 6.2 yuan/kg. The demand - side shows little change. Considering the results of Sino - US economic and trade consultations, Zhengzhou cotton is expected to be slightly stronger in the short - term [6]. - For the cotton market, it is expected that the future trend of US cotton will likely be volatile, while Zhengzhou cotton is expected to show a slightly stronger volatile trend. For the cotton trading strategy, it is recommended to wait and see for arbitrage and options [7][8][9]. - In the cotton yarn industry, the trading volume of the pure cotton yarn market is average, with prices remaining stable. Some manufacturers plan to reduce prices to sell goods. Order demand is generally weak, but there are re - order situations due to Double 11, and high - count yarn orders for export are good. The price of all - cotton grey cloth is stable with a slight downward trend, and the inventory of manufacturers is accumulating [9]. 3. Summary by Directory First Part: Market Information - **Futures Market**: It shows the closing prices, price changes, trading volumes, and open interest of various cotton and cotton yarn futures contracts such as CF01, CF05, CY01, etc. For example, the closing price of CF01 contract is 13,600, with a decrease of 20, and the trading volume is 211,342 hands [2]. - **Spot Market**: Lists the prices and price changes of various cotton and cotton yarn spot products, such as the price of CCIndex3128B is 14,843 yuan/ton, with an increase of 13 yuan/ton, and the price of CY IndexC32S is 20,475 yuan/ton, remaining unchanged [2]. - **Price Spreads**: Includes cotton inter - period spreads, cotton yarn inter - period spreads, cross - variety spreads, and internal - external price spreads. For example, the 1 - month to 5 - month cotton inter - period spread is - 10, with a decrease of 5 [2]. Second Part: Market News and Views - **Cotton Market News**: - The Xinjiang cotton road transportation price index on October 30, 2025, was 0.1803 yuan/ton·km, remaining unchanged from the previous period. It is expected to show an overall fluctuating upward trend in the short term [4]. - On October 29, 2025, the machine - picked cotton acquisition index in Xinjiang was 6.28 yuan/kg, a decrease of 0.02 yuan/kg from the previous day, and the hand - picked cotton acquisition index was 7.05 yuan/kg, remaining unchanged [4]. - In September 2025, Japan's clothing imports entered the peak season, with both import volume and value increasing significantly compared to the previous month. The import value was 372.276 billion yen (equivalent to 2.524 billion US dollars), a year - on - year increase of 7.52% and a month - on - month increase of 13.12%. The import volume was 110,000 tons, a year - on - year increase of 5.13% and a month - on - month increase of 21.91% [5]. - The US will cancel the 10% so - called "fentanyl tariff" on Chinese goods, and the 24% counter - tariff on Chinese goods will continue to be suspended for one year. China will adjust its counter - measures accordingly, and both sides agree to extend some tariff exclusion measures [5][6]. - **Trading Logic**: The supply - side acquisition progress is at a peak, and acquisition prices are stable with a slight increase. The demand - side changes little. Considering the Sino - US economic and trade consultation results, Zhengzhou cotton is expected to be slightly stronger in the short term [6]. - **Trading Strategy**: - Unilateral: It is expected that the future trend of US cotton will likely be volatile, while Zhengzhou cotton is expected to show a slightly stronger volatile trend [7]. - Arbitrage: Wait and see [8]. - Options: Wait and see [9]. - **Cotton Yarn Industry News**: - The night - session of Zhengzhou cotton rose yesterday. The trading volume of the pure cotton yarn market is average, with prices remaining stable. Some manufacturers plan to reduce prices to sell goods. Overall order demand is weak, but there are re - order situations due to Double 11, and high - count yarn orders for export are good. The price of Xinjiang - produced high - grade compact - spun C32S is 21,600 - 21,800 yuan/ton [9]. - The price of all - cotton grey cloth is stable with a slight downward trend. Due to weak downstream demand, downstream customers make small - scale purchases. The sales of medium - and high - count grey cloth are not as expected, and the inventory of manufacturers is accumulating [9]. Third Part: Options - **Option Data**: Lists the option contract names, underlying contract prices, closing prices, price changes, implied volatility (IV), and other data of cotton options on October 28, 2025, such as the closing price of CF601C13400.CZC is 240, with a decrease of 10.4% [11]. - **Volatility Judgment**: On October 28, 2025, the 120 - day historical volatility (HV) of cotton decreased slightly compared to the previous day. The implied volatility of CF601 - C - 13400 is 7.5%, that of CF601 - P - 13000 is 10%, and that of CF601 - P - 12400 is 13.5% [11]. - **Option Strategy**: Wait and see [13]. Fourth Part: Related Attachments - It includes multiple charts such as the internal - external cotton price spread under 1% tariff, cotton 1 - month basis, cotton 5 - month basis, etc., which visually show the price trends and relationships of cotton and cotton yarn [15][16][17] [18][19][21][22][23][24][26].