Core Points - The article discusses the regulations regarding position limits for futures trading, emphasizing that positions approved for hedging are not subject to these limits [3] - It outlines the specific rules for position limits based on the type of futures contract and the trading volume [5][7] Group 1: Position Limits Regulations - The number of positions held by the same client must not exceed the limits set by the exchange [5] - If the position limit is exceeded, T+0 trading in the same direction is prohibited, and T+1 will result in forced liquidation according to relevant regulations [5] - Positions held by traders with actual control relationships are combined for calculation [5] Group 2: Specific Position Limits by Contract - Different futures contracts have varying position limits, which are determined by the exchange based on the specific circumstances of each contract [7] - For example, individual clients cannot hold positions in contracts during the delivery month, with limits set to zero [8] - The limits for specific contracts, such as PVC futures, are calculated based on the total open interest, with a maximum of 10% of the single-sided position [11] Group 3: Delivery Month Regulations - The position limit for the month before the delivery month is set at 5,000 contracts, while during the delivery month, it is reduced to 2,500 contracts [12] - Different futures products have distinct limit requirements, with some, like eggs and live pigs, having absolute limits rather than proportional ones [13]

Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The report presents the price changes of various commodities on October 29, 2025, compared to October 28, 2025, including chemicals, agricultural products, and more. It also covers macro - economic news and provides trading strategies for different commodities and financial products based on their fundamentals and market trends [4]. - Macroeconomic news shows positive developments in China - ASEAN cooperation, potential progress in Sino - EU trade talks, and China's stance on financial opening - up and economic policies. The performance of the A - share market and international stock markets is also analyzed [7][8][20][21]. 3. Summary by Category 3.1 Commodity Price Changes - **Chemicals**: On October 29, 2025, among chemicals, glass had the highest increase rate of 1.348% (from 1,113.00 to 1,128.00), while crude oil had the largest decline rate of - 0.994% (from 462.70 to 458.10) [4]. - **Agricultural Products**: Among agricultural products, soybean meal had the highest increase rate of 0.538% (from 2,975.00 to 2,991.00), and palm oil had the largest decline rate of - 1.496% (from 8,958.00 to 8,824.00) [4]. 3.2 Macroeconomic News - China and ASEAN signed the FTA 3.0 upgrade protocol, expanding cooperation in emerging fields [7]. - There will be a Sino - EU talk on rare earths, and China hopes for dialogue to solve trade differences [7]. - China is committed to financial opening - up, and the central bank will implement a moderately loose monetary policy [7]. - The revised Network Security Law will take effect on January 1, 2026, and the Environmental Protection Tax Law will include volatile organic compounds in the tax scope [8]. - The number of overseas travelers for tax - free shopping and the tax - free amount in China have increased significantly this year [8]. - The 8th China International Import Expo will be held from November 5th to 10th, with an expanded scale [8]. - China's soybean area and output are expected to remain high, and the number of breeding sows has decreased [8]. - China's wholesale and retail industries have shown growth in the first three quarters [8]. - The 2025 Hurun Rich List was announced, with Zhong Shanshan becoming the richest man in China [9]. 3.3 Commodity Trading Strategies - **Agricultural Products** - **Peanuts**: The price is expected to fluctuate between 7700 - 7900, and it is recommended to wait and see [13]. - **Sugar**: Consider selling call options at high prices, with a support level at 5450 yuan/ton [13]. - **Corn**: Observe the support in the 2100 - 2120 range [14]. - **Pigs**: The near - term futures are expected to be strong, and the long - term futures will remain weak [14]. - **Eggs**: Short - sell on the futures and conduct inter - month reverse arbitrage [16]. - **Cotton**: Wait and see, and consider going long if it breaks through 13600 yuan/ton [16]. - **Energy and Chemicals** - **Urea**: The UR2601 contract is expected to operate in the 1580 - 1670 yuan/ton range [16]. - **Caustic Soda**: The 2601 contract is under pressure [16]. - **Coking Coal and Coke**: They are expected to remain strong, with coking coal facing pressure around 1300 and coke around 1800 [16]. - **Industrial Metals** - **Copper and Aluminum**: Prices are expected to remain high, but beware of macro - risks [17]. - **Alumina**: The 2601 contract is operating at a low level [17]. - **Steel Products**: Steel prices are expected to fluctuate strongly, with rebar facing pressure around 3200 and hot - rolled coils around 3400 [17]. - **Ferroalloys**: They will maintain a wide - range fluctuating follow - up trend, and the industrial rebound hedging idea remains unchanged [19]. - **Lithium Carbonate**: Adopt a bullish strategy, with a support level at 80000 and a pressure level at 84000 [19]. - **Options and Finance** - **Stock Index Futures**: Trend investors can focus on inter - variety spread arbitrage opportunities, and volatility investors can consider buying straddles or wide straddles after the HO volatility decline [19]. - **Stock Index**: Although the Shanghai Composite Index broke through 4000 points, there is still a need for consolidation. Pay attention to the performance of the third - quarter reports of listed companies [20][21].

Core Insights - China's futures market is becoming a significant global player, with its crude oil futures market ranking among the top three worldwide and serving as a crucial pricing reference in the Asia-Pacific region [1][2] - The market is experiencing a dual approach of "bringing in" and "going out," with a notable increase in foreign participation and the establishment of overseas subsidiaries by Chinese futures companies [2][4] - The integration of Chinese futures prices into global trade is enhancing the pricing power of Chinese enterprises, allowing them to optimize international trade experiences [4][5] Market Scale and Internationalization - China's commodity futures trading volume accounts for over 60% of the global total, with 16 out of the 20 largest agricultural futures contracts being Chinese [2][6] - The number of new clients in the futures market increased by 410,000 in the first half of the year, with active traders from 39 countries and regions [2][6] - The China Securities Regulatory Commission has removed foreign ownership limits for futures companies, creating a more transparent and stable environment for foreign investors [2][6] Pricing Influence and Risk Management - Chinese futures prices are increasingly being used as benchmarks in international trade, with significant products like PTA and rubber being referenced globally [6][7] - Companies are leveraging futures pricing to enhance their bargaining power, stabilize raw material costs, and improve the efficiency of international deliveries [4][5] - The introduction of risk management tools and pricing mechanisms has allowed companies to expand into emerging markets with greater confidence [5][7] Future Outlook - The Chinese futures market is expected to continue expanding its product offerings and reducing institutional costs for foreign investors, while enhancing cross-border trading efficiency [8] - Technological advancements will play a key role in improving risk management and transaction efficiency in cross-border trading [8]