Group 1: Report Industry Investment Ratings - The investment ratings for cotton, sugar, and pulp are all neutral [2][6][8] Group 2: Report Core Views - For cotton, in the short - term, the domestic market faces downstream and price - difference pressures with a risk of high - level correction. In the long - term, the upward space depends on policy implementation. The global market has short - term supply pressure and weak consumption, while the US cotton is in a low - valuation range [2] - For sugar, the 2025/26 global sugar market is in surplus. In the short - term, the trade flow is in a tight balance, and in the long - term, the market should not be overly pessimistic. The domestic market has increasing supply and inventory pressure, and the price is expected to oscillate at the bottom [4][6] - For pulp, overseas supply is disrupted, and there is a pre - Spring Festival restocking expectation. The short - term trend is expected to be slightly stronger in oscillation, but the upward height depends on demand improvement and inventory digestion [8] Group 3: Summary by Related Contents Cotton Market News and Key Data - Futures: The closing price of cotton 2605 contract was 14,675 yuan/ton, down 135 yuan/ton (- 0.91%) from the previous day. Spot: The Xinjiang arrival price of 3128B cotton was 15,727 yuan/ton, up 10 yuan/ton; the national average price was 15,972 yuan/ton, up 2 yuan/ton [1] - India's 2025/26 cotton production increased by 130,000 tons, domestic demand by 170,000 tons, and exports decreased by 50,000 tons compared to last month's assessment. Compared with the previous year, the ending inventory increased by 800,000 tons [1] Market Analysis - Internationally, the new cotton in the Northern Hemisphere is on the market, with high supply pressure and weak consumption. The US cotton export is slow, and it is under short - term pressure. Domestically, the 2025/26 cotton production increased, the commercial inventory rose seasonally, the downstream orders declined, and the inventory increased. The annual supply - demand is expected to be balanced, with a possible inventory shortage at the end of the year [2] Strategy - Neutral. Be vigilant against high - level correction in the short term, and the long - term upward space depends on policy implementation [2] Sugar Market News and Key Data - Futures: The closing price of sugar 2605 contract was 5,280 yuan/ton, down 19 yuan/ton (- 0.36%) from the previous day. Spot: The sugar price in Nanning, Guangxi was 5,360 yuan/ton, down 10 yuan/ton; in Kunming, Yunnan it was 5,215 yuan/ton, down 15 yuan/ton [2] - As of January 12, 2026, Punjab, India had crushed over 18.647 million tons of sugarcane, producing 1.712 million tons of sugar [3] Market Analysis - The global 2025/26 sugar market is in surplus. In the short term, the trade flow is in a tight balance, and in the long term, the market should not be overly pessimistic. Domestically, sugar production is increasing, the supply is growing seasonally, and the import pressure remains high [4][5] Strategy - Neutral. The price may oscillate at the bottom in the short - to - medium term, with limited downward space [6] Pulp Market News and Key Data - Futures: The closing price of pulp 2605 contract was 5,436 yuan/ton, down 58 yuan/ton (- 1.06%) from the previous day. Spot: The price of Chilean Silver Star softwood pulp in Shandong was 5,515 yuan/ton, down 35 yuan/ton; the price of Russian softwood pulp was 5,090 yuan/ton, down 45 yuan/ton [6] - The import wood pulp spot market price turned weak. The price of imported softwood pulp in some markets decreased by 10 - 50 yuan/ton, and the price of imported hardwood pulp in some markets decreased by 10 - 20 yuan/ton [6] Market Analysis - Supply: Overseas pulp mills had shutdown and maintenance. Demand: European port inventory decreased, and domestic port inventory was high but decreased slightly in December. The expanding paper production capacity will increase the demand for pulp [7] Strategy - Neutral. The short - term trend is expected to be slightly stronger in oscillation, and the upward height depends on demand and inventory [8]

Cotton Market Insights - The cotton futures contract 2601 closed at 13,835 CNY/ton, an increase of 85 CNY/ton, or 0.62% week-on-week [2][17] - In Xinjiang, the spot price of cotton reached 14,896 CNY/ton, up 23 CNY/ton, while the national weighted average spot price was 15,062 CNY/ton, increasing by 40 CNY/ton [2][18] - As of the end of November 2025, China's commercial cotton inventory stood at 4.6836 million tons, up 175.3 thousand tons, a 59.82% increase from the previous month [3][18] International Market Analysis - The USDA reported a 36% decrease in net cotton contracts for the week of November 7-13, with a total of 42,547 tons signed [2][18] - The U.S. cotton production is under pressure due to increased inventory levels, while global textile consumption remains weak, leading to short-term pressure on cotton prices [4][18] - The cotton market is expected to face seasonal supply pressures as new cotton is harvested in the Northern Hemisphere [4][19] Domestic Market Analysis - Domestic cotton production is expected to increase as the harvest in Xinjiang nears completion, contributing to a seasonal rise in commercial inventory [5][19] - The demand side shows weakness as the textile industry enters its off-season, although spinning profits have improved, limiting downward pressure on cotton prices [5][19] - The strategy suggests a neutral to slightly bullish outlook, focusing on buying opportunities in the 05 contract due to expected tight supply in the new year [6][20] Sugar Market Insights - The sugar futures contract 2605 closed at 5,214 CNY/ton, down 19 CNY/ton, or 0.36% week-on-week [7][21] - In Guangxi, the spot price of sugar was 5,370 CNY/ton, down 40 CNY/ton, while in Yunnan, it was 5,295 CNY/ton, down 75 CNY/ton [7][22] - Brazil's sugarcane planting area is projected to be 9.398 million hectares, a 0.2% decrease from the previous month, with sugar production expected to decline by 1.4% year-on-year [8][22] Market Dynamics - The global sugar supply remains in surplus, with no immediate signs of reversal, limiting the potential for price rebounds in the short to medium term [9][23] - Domestic sugar supply is currently ample as factories in Guangxi begin production, although the market remains under downward pressure [9][23] - The strategy is neutral, with attention on market dynamics that could lead to new lows, while maintaining a low-level consolidation approach [10][24] Pulp Market Insights - The pulp futures contract 2605 closed at 5,534 CNY/ton, an increase of 44 CNY/ton, or 0.80% week-on-week [11][25] - The average price of needle pulp in Shandong was 5,590 CNY/ton, up 90 CNY/ton, while Russian needle pulp averaged 5,090 CNY/ton, up 40 CNY/ton [11][26] - Recent announcements of mill closures and maintenance in North America are expected to impact supply, while demand in Europe shows signs of improvement [13][27] Supply and Demand Outlook - Despite high inventory levels in domestic ports, recent declines in stock levels indicate potential marginal demand growth for pulp as paper production capacity expands [13][27] - The strategy remains neutral, with recent price increases driven by market adjustments, although fundamental supply-demand conditions have yet to show significant improvement [14][28]

Core Viewpoint - The pulp futures price has significantly increased, with the main contract closing at 5458 CNY/ton, reflecting a rise of 3.53% [7]. Supply Summary - Recent announcements indicate several overseas pulp mills are undergoing maintenance, including Domtar's permanent closure of the Crofton mill in British Columbia, which had an annual capacity of 380,000 tons of bleached softwood pulp [8]. - Additionally, the Rauma mill of the Finnish group will temporarily halt production of 650,000 tons of softwood pulp starting December 15, with a gradual resumption expected by January 7 [8]. - The CEO of Finnish company Fibria has indicated preparations for significant production cuts at the Joutseno mill in 2026 due to anticipated market instability in early next year [8]. Demand Summary - The latest data shows a noticeable decrease in wood pulp inventory at European ports in October, indicating a slight improvement in demand [3]. - In China, despite the introduction of substantial paper production capacity this year, effective terminal demand remains insufficient, leading to an oversupply of paper and low operating rates at paper mills [3]. - The overall production of finished paper has not seen significant increases, and the excess capacity in the paper sector continues to compress industry profits [3]. - Downstream paper mills are exhibiting cautious procurement attitudes, resulting in historically high pulp inventory levels at domestic ports [3]. Market Analysis - Recent price increases in pulp futures are attributed to the market gradually digesting previous bearish factors, alongside short covering and disruptions in overseas supply [3]. - However, the lack of substantial improvement in supply and demand dynamics may limit further price increases [3]. - Attention is also drawn to the remaining issues with the needle warehouse receipts that could impact market conditions [3].