1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the price of US cotton futures fluctuated, with the December contract closing at 64.18 cents per pound, a decrease of 0.11 cents per pound or 0.17% from the previous week. The price of Zhengzhou cotton rebounded slightly, with the January contract closing at 13,540 yuan per ton, an increase of 205 yuan per ton or 1.54% from the previous week. The China Cotton Price Index (CCIndex) 3128B rose to 14,803 yuan per ton, up 19 yuan per ton from the previous trading day. The basis weakened slightly, and the spread between Zhengzhou cotton January - May contracts strengthened slightly [9]. - Due to the US government shutdown, USDA data continued to be suspended. On October 23, the purchase index of machine - picked cotton in Xinjiang was 6.28 yuan per kilogram, up 0.11 yuan per kilogram from the previous week. As of the week of October 24, the spinning mill operating rate was 65.6%, flat compared to the previous week, 7.4 percentage points lower than the same period last year, and 9.6 percentage points lower than the average of the past five years [9]. - Fundamentally, the demand during the peak consumption season this year was weak, and the operating rate of the downstream industrial chain declined significantly compared to the same period in previous years. There is also an expectation of a bumper harvest in the new season in China, leading to significant selling hedging pressure. Although the purchase price of new cotton has increased slightly recently, driving the rebound of Zhengzhou cotton, the fundamentals remain weak, and it is expected that the upward space for cotton prices in the short term is relatively limited [9]. 3. Summary by Relevant Catalogs 3.1 Week - on - Week Assessment and Strategy Recommendation - **Market Review**: US cotton futures prices fluctuated, with the December contract closing at 64.18 cents per pound, down 0.17%. The spread between US cotton December - March contracts was - 1.53 cents per pound, down 0.03 cents per pound. Zhengzhou cotton prices rebounded slightly, with the January contract closing at 13,540 yuan per ton, up 1.54%. The China Cotton Price Index (CCIndex) 3128B was 14,803 yuan per ton, up 19 yuan per ton. The basis weakened slightly to 1263 yuan per ton, down 96 yuan per ton, and the spread between Zhengzhou cotton January - May contracts strengthened to 0 yuan per ton, up 55 yuan per ton [9]. - **Industry Information**: USDA data suspension due to the US government shutdown. Xinjiang's machine - picked cotton purchase index rose to 6.28 yuan per kilogram. The spinning mill operating rate was 65.6%, showing no change from the previous week but lower than the same period last year and the five - year average [9]. - **Viewpoints and Strategies**: Weak demand during the peak season, low downstream operating rates, and expected bumper harvests with high selling hedging pressure. The recent increase in new cotton purchase prices has driven the rebound of Zhengzhou cotton, but short - term upward price space is limited [9]. 3.2 Spread Trend Review The report presents multiple spread trend charts, including the China Cotton Price Index, Zhengzhou cotton basis, import profit, Zhengzhou cotton monthly spreads, US cotton spreads, and other international spread trends, but no specific text analysis is provided [24]. 3.3 Domestic Market Situation - **Cotton Production**: It shows the processing and inspection quantity of Chinese cotton and the purchase price of Xinjiang seed cotton through charts [39]. - **Cotton Imports**: Displays monthly and cumulative annual import volumes of Chinese cotton [41]. - **US Exports to China**: Presents the cumulative and weekly export contract volumes of the US to China [43]. - **Cotton Yarn Imports**: Shows monthly and cumulative annual import volumes of Chinese cotton yarn [45]. - **Downstream Operating Rates**: Presents the operating rates of spinning and weaving mills [48]. - **National Sales Progress**: Displays the national cotton sales progress and the daily trading volume of the Light Textile City [50]. - **Cotton Inventory**: Shows the weekly commercial inventory of Chinese cotton and the combined commercial and industrial monthly inventory [53]. - **Spinning Mill Inventory**: Displays the cotton and yarn inventories of spinning mills [55]. 3.4 International Market Situation - **US Situation**: Includes the proportion of US cotton - growing areas without drought, the cotton good - quality rate, double - weekly and cumulative processing volumes, production and planting area estimates, export contract progress, export shipment volumes, supply surplus/shortage, and inventory - to - consumption ratio [58][60][62]. - **Brazilian Situation**: Covers the planting area, production, export volume, supply surplus/shortage, and inventory - to - consumption ratio of Brazilian cotton [71][74]. - **Indian Situation**: Involves the planting area, production, consumption, import and export volumes, supply surplus/shortage, and inventory - to - consumption ratio of Indian cotton [79][82].