Group 1: Report Overview - The report is an agricultural product daily report on cotton and cotton yarn, dated April 8, 2024 [2] Group 2: Market Information Futures Market - CF01 closed at 13,160 with a decline of 180, trading volume of 10,879 (increase of 5,541), and open interest of 23,961 (increase of 2,345) [3] - CF05 closed at 12,835 with a decline of 255, trading volume of 463,019 (increase of 103,741), and open interest of 439,624 (decrease of 26,520) [3] - CF09 closed at 13,000 with a decline of 250, trading volume of 322,506 (increase of 94,241), and open interest of 321,806 (increase of 35,642) [3] - CY01 closed at 19,840 with no change, trading volume of 0, and open interest of 6 [3] - CY05 closed at 18,935 with a decline of 230, trading volume of 5,324 (increase of 1,344), and open interest of 2,331 (decrease of 737) [3] - CY09 closed at 18,965 with a decline of 265, trading volume of 484 (increase of 208), and open interest of 630 (decrease of 78) [3] Spot Market - CCIndex3128B was priced at 14,815 yuan/ton [3] - Cot A was priced at 76.70 cents/pound, down 2.90 [3] - CY IndexC32S was priced at 20,830 yuan/ton, down 240 [3] - FCY IndexC33S was priced at 22,073 yuan/ton, up 65 [3] Spreads - Cotton 1 - 5 month spread was 325, up 75; 5 - 9 month spread was -165, down 5; 9 - 1 month spread was -160, down 70 [3] - Cotton yarn 1 - 5 month spread was 905, up 230; 5 - 9 month spread was -30, up 35; 9 - 1 month spread was -875, down 265 [3] - CY01 - CF01 spread was 6,680, up 180; CY05 - CF05 spread was 6,100, up 25; CY09 - CF09 spread was 5,965, down 15 [3] - 1% tariff inner - outer cotton spread was 1,520, up 15,067; sliding - duty inner - outer cotton spread was 652, up 14,965; inner - outer yarn spread was -1,243, down 305 [3] Group 3: Market News and Views Cotton Market News - From March 27 to April 2, 2025, India's cotton - growing areas (92.4%) had a weekly rainfall of 0.6mm, 0.4mm lower than normal and 0.6mm lower than last year. Cumulative rainfall from March 1 to April 2 was 3.8mm, 3.1mm lower than normal [4] - As of April 8, the cotton planting rate in 15 major US cotton - growing states was 4%, 1 percentage point lower than last year and 2 percentage points lower than the five - year average. Texas' planting speed was also slow [6] - As of April 7, 2025, Zhangjiagang Free Trade Zone's total cotton inventory was 50,400 tons, up 1.42% week - on - week. Bonded cotton was 47,300 tons, down 0.10%; non - bonded cotton was 3,100 tons, up 32.49%. The proportion of US cotton decreased by 0.19 percentage points, Brazilian cotton by 0.06 percentage points, and Australian cotton by 0.45 percentage points, while other regions increased by 0.69 percentage points. Net inbound inventory was 524.23 tons [6] - On April 8, the Chinese Foreign Ministry condemned the US threat to impose an additional 50% tariff on China [7] Trading Logic - The US will impose a 10% benchmark tariff globally on April 5 and additional taxes on about 60 countries with large trade deficits. China will be subject to a 54% tariff this year. The minimum tariff exemption will end on May 2. The market is trading on macro - risk events, which are expected to have a negative impact on cotton prices [8] Trading Strategies - Unilateral: Be bearish, hold short positions as the fundamentals are weak [9] - Arbitrage: Wait and see [9] - Options: Consider selling call options or buying put options [9] Cotton Yarn Industry News - Affected by tariffs, Zhengzhou cotton prices dropped sharply, market confidence was hit, new orders for pure cotton yarn were scarce, and prices may fall [9] - After the sharp drop in the futures and stock markets, market sentiment was cautious, trading weakened, and prices are expected to decline. As the market stabilizes, weavers may start to purchase [9] Group 4: Options - On April 8, 2025, for CF509C14000.CZC, the closing price was 118.00, down 9.2%, implied volatility was 14.1% [11] - For CF509P13600.CZC, the closing price was 776.00, up 41.3%, implied volatility was 13.1% [11] - For CF509P13200.CZC, the closing price was 505.00, up 46.8%, implied volatility was 12.7% [11] - The 120 - day HV of cotton was 9.7765, slightly lower than the previous day [11] - The PCR of the main contract's open interest was 0.5247, and the PCR of trading volume was 0.9622. Both call and put trading volumes increased, indicating a bearish sentiment [12] - Options strategy: Consider selling call options or buying put options [13]