Report Summary 1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core View In the context of the expectation of a new crop's high - yield and the reality of old - crop inventory shortage, the pattern of near - term strength and long - term weakness is prominent. From late July to early August, multiple policies and industry events are in the window period. The content of domestic policy meetings, the progress of Sino - US trade negotiations, the actualization of new cotton's high - yield, whether the import sliding - duty quota will be increased and the amount of the increase have a significant impact on the Zhengzhou cotton's expectation. Among them, the increase in the import sliding - duty quota has a greater impact on the old - crop supply - demand and near - term contracts [4]. 3. Summary by Related Catalog Cotton Futures and Spot Prices - **Domestic Cotton Futures**: On August 21, CF01 was 14030, down 25 (-0.18%) from August 20; CF09 was 13770, down 30 (-0.22%); CF09 - 01 was -260, down 5 [3]. - **Domestic Cotton Spot**: In Xinjiang, it was 15038 on August 21, down 42 (-0.28%); in Henan, 15274, down 30 (-0.20%); in Shandong, 15208, down 30 (-0.20%); Xinjiang - main continuous basis was 1008, down 17 [3]. - **Domestic棉纱 Futures**: CY was 20060 on August 21, down 5 (-0.02%) [3]. - **Domestic棉纱 Spot**: C32S price index remained at 20700 on August 21, with no change [3]. - **US Cotton Spot**: CT (USD/磅) was 67.53 on August 21, with no change; the arrival price was 77.20, 1% quota pick - up price was 13602, and sliding - duty pick - up price was 14358, all with no change [3]. Spread Data - **Yarn - Cotton Spread**: The futures spread was 6030 on August 21, up 20; the spot spread remained at 756 [3]. - **Internal - External Spread (Spot)**: It was 1636 on August 21, down 30 [4]. Other Data - **Cotton Import Profit (Shandong - US Cotton 1% Quota)**, **National Cotton Commercial Inventory (in 10,000 tons)**, **Spinning Mill Finished - Product Inventory (days)**, **Weaving Mill Finished - Product Inventory (days)**, and **Cotton Grey Cloth Inventory** are presented in graphical form in the report, showing historical data trends [4].

Report Summary Core View - In the context of the expected new crop harvest and the reality of old - crop inventory shortage, the pattern of near - term strength and long - term weakness is prominent. From late July to early August, multiple policies and industry events are in the window period. Domestic policy - related meeting contents, Sino - US trade negotiation progress, the realization of new cotton harvest, whether the import sliding - scale duty quota will be increased and the increase amount have a significant impact on the Zhengzhou cotton outlook, especially the increase of import sliding - scale duty quota has a greater impact on the old - crop supply - demand and near - term contracts [4] Data Summary Domestic Cotton Futures - CF01 on August 7 was 13835, down 15 (-0.11%) from August 6; CF09 was 13670, down 20 (-0.15%); CF09 - 01 was - 165, down 5 from August 6 [3] Domestic Cotton Spot - In Xinjiang on August 7, the price was 15089, up 6 (0.04%); in Henan it was 15220, up 15 (0.10%); in Shandong it was 15169, up 20 (0.13%); Xinjiang - main continuous basis was 1419, up 26 [3] Domestic Cotton Yarn Futures and Spot - Domestic cotton yarn futures CY on August 7 was 19705, down 5 (-0.03%); domestic cotton yarn spot C32S price index was 20620, down 20 (-0.10%) [3] US Cotton Spot - US cotton spot CT (USD/ pound) on August 7 was 67, unchanged (0.00%); the arrival price was 76.50, down 0.5 (-0.65%); 1% quota pick - up price was 13480, down 87 (-0.64%); sliding - scale duty pick - up price was 14282, down 53 (-0.37%) [3] Spread Data - Yarn - cotton spread (futures) was 5870, up 10; yarn - cotton spread (spot) was 802, up 34; the spot internal - external spread was 1689, up 107 [3][4]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report In the context of the expected high yield of new cotton crops and the reality of the shortage of old - crop inventories, the pattern of near - term strength and long - term weakness is prominent. From late July to early August is a window period for multiple policies and industry events. The content of domestic policy meetings, the progress of Sino - US trade negotiations, the actualization of the high yield of new cotton, whether the import sliding - duty quota will be increased and the magnitude of the increase all have a significant impact on the Zhengzhou cotton outlook, especially the increase of the import sliding - duty quota has a greater impact on the supply - demand of old crops and near - term contracts [3]. 3. Summary by Relevant Items Domestic Cotton Futures - On July 29, CF01 was 14025, down 40 or - 0.28% from July 28; CF09 was 13925, down 150 or - 1.07% from July 28; CF09 - 01 was - 100, down 110 from July 28 [3]. Domestic Cotton Spot - On July 29, the price in Xinjiang was 15431, down 42 or - 0.27% from July 28; in Henan it was 15634, down 46 or - 0.29%; in Shandong it was 15562, down 48 or - 0.31%. The Xinjiang - main continuous basis was 1506, up 108 from July 28 [3]. Domestic Cotton Yarn Futures and Spot - On July 29, the domestic cotton yarn futures CY was 19995, down 240 or - 1.19% from July 28. The C32S price index of domestic cotton yarn spot was 20720, down 60 or - 0.29% from July 28 [3]. US Cotton Spot - On July 29, the CT price was 68 USD/ pound, unchanged from July 28. The arrival price was 77.60, up 0.1 or 0.13% from July 28. The 1% quota pick - up price was 13715, up 17 or 0.12% from July 28. The sliding - duty pick - up price was 14425, up 5 or 0.03% from July 28 [3]. Spread Data - On July 29, the yarn - cotton spread (futures) was 5970, down 200 from July 28; the yarn - cotton spread (spot) was 710, down 12 from July 28; the domestic - foreign spread (spot) was 1847, down 65 from July 28 [3].

Report Summary 1. Report Industry Investment Rating No information provided on the report industry investment rating. 2. Core View of the Report The demand continues to limit the rebound momentum of Zhengzhou cotton futures [1]. 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Data**: The closing price of CF2509 was 12,950 yuan/ton with a daily decline of 0.31%, and the night - session closing price was 12,880 yuan/ton with a decline of 0.54%. The trading volume was 276,902 lots, an increase of 22,870 lots from the previous day, and the open interest was 760,649 lots, a decrease of 12,543 lots. For CY2507, the closing price was 18,920 yuan/ton with a daily decline of 0.08%, and the night - session closing price was 18,870 yuan/ton with a decline of 0.26%. The trading volume was 2,949 lots, a decrease of 1,999 lots from the previous day, and the open interest was 22,279 lots, an increase of 1,045 lots. The closing price of ICE US cotton 07 was 67.56 cents/pound with a decline of 1.66% [1]. - **Warehouse Receipt Data**: The number of Zhengzhou cotton warehouse receipts was 10,479, a decrease of 76 from the previous day, and the valid forecast was 1,960, an increase of 22. The number of cotton yarn warehouse receipts was 10, unchanged from the previous day, and the valid forecast was 1, an increase of 10 [1]. - **Spot Price Data**: The price of Beijiang 3128 machine - picked cotton was 14,028 yuan/ton, a decrease of 40 yuan from the previous day, a decline of 0.28%. The price of Nanjiang 3128 machine - picked cotton was 13,830 yuan/ton, a decrease of 40 yuan from the previous day, a decline of 0.29%. The price in Shandong was 14,314 yuan/ton, an increase of 28 yuan from the previous day, an increase of 0.20%. The price in Hebei was 14,350 yuan/ton, an increase of 33 yuan from the previous day, an increase of 0.23%. The 3128B index was 14,244 yuan/ton, an increase of 10 yuan from the previous day, an increase of 0.07%. The international cotton index M was 77.21 cents/pound, a decrease of 0.46% from the previous day. The price of pure - cotton carded yarn 32 - count was 20,490 yuan/ton, unchanged from the previous day. The arrival price of pure - cotton carded yarn 32 - count was 22,402 yuan/ton, an increase of 55 yuan from the previous day, an increase of 0.25% [1]. - **Spread Data**: The CF9 - 1 spread was - 205 yuan/ton, an increase of 30 yuan from the previous day. The spread between Beijiang 3128 machine - picked cotton and CF509 was 1,080 yuan/ton, unchanged from the previous day [1]. 3.2 Macro and Industry News - **Domestic Cotton Spot Situation**: The overall trading of domestic cotton spots was still weak. Some replenished stocks before the holiday. The sales basis of Nanjiang cotton was relatively weaker than that of Beijiang, and there were new low - basis spot goods locally. For example, the sales basis of 2024/25 Nanjiang Kashi machine - picked 3129/29B with impurity within 3.5 was mostly at CF09 + 800 or above, and a small number of the same - quality low - price ones were at CF09 + 700 - 800, for self - pick - up in Xinjiang. For 2024/25 Nanjiang machine - picked 3129/29 - 30B with impurity within 3, the sales basis was mostly at CF09 + 1300 - 1400 or above, and a small number of the same - quality low - price ones were around CF09 + 1250, for self - pick - up in the inland. For 2024/25 Beijiang local machine - picked 4129/29 - 30B with impurity between 3 - 3.5, some transaction bases were at CF09 + 950 - 1050, for self - pick - up in Xinjiang [2]. - **Domestic Cotton Textile Enterprises Situation**: The pure - cotton yarn market was generally weak, with poor trading. The market entered the off - season, and the order situation was not good. Spinning enterprises mostly negotiated for sales. Pure - cotton grey fabrics gradually entered the off - season, the market sentiment was weak, the shipment volume of regular varieties declined, and the inventory of weaving factories gradually increased. Currently, some weaving factories still had small orders to maintain production, but weaving factories in Shandong and Hebei said that it was difficult to get subsequent orders. Some weaving factories planned to have a holiday during the May Day [2]. - **US Cotton Situation**: ICE cotton fell yesterday due to the improvement of weather conditions in the main US cotton - producing areas. As of the week ending April 27, the US cotton planting rate was 15%, compared with 11% in the previous week, 14% in the same period last year, and the 5 - year average of 14% [3]. 3.3 Trend Intensity The trend intensity of cotton is 0, indicating a neutral trend [5].