Tongzhou Cotton Market Brief, 3rd week of April 2024

I. Zhengmian (China's cotton futures contract)
(1) Bullish Factors
1) Xinjiang has entered the planting stage, and weather factors have entered the market's trading perspective. Around the 18th of this week, there will be another period of rainfall and temperature drop in northern and eastern Xinjiang.
2) The recent improvement in demand has helped reduce the finished goods inventory of yarn and fabric mills, easing the contradiction. The operating rate of yarn mills remains high.
3) A large part of this year's imports are from state reserves. This supply will only be released to the market when prices rise to a certain level.
(2) Bearish Factors
1) After a sharp drop in US cotton recently, the import window has opened for a short time, and some traders are buying US cotton to hedge Zhengmian. Domestic supply and hedging are increasing marginally.
2) From the demand side, overall domestic orders remain weak, with most orders lasting until the end of April. Moreover, prices have already reflected the recent improvement in demand, and future sustainability is insufficient.
3) Currently, with the continuous increase in warehouse receipts and valid forecasts, the pressure on warehouse receipts for the 05 contract is still very heavy.
II. US Cotton
(1) Bullish Factors
1) US cotton had a large weekly shipment volume, and the shipment progress is still higher than the five-year average. The problem of low US cotton ending stocks has not been alleviated.
2) The US cotton 23/24 season's stock-to-sales ratio is at a historical low, and Southeast Asia's raw material inventory is also at a low level. With the start of the apparel restocking cycle, the downside space for US cotton is limited.
3) US cotton has fallen 20 cents from its highest point, a decrease of 19.6%. The excessive drop in the short term needs a rebound to adjust, and technically, it is also approaching the support level.
(2) Bearish Factors
1) US cotton warehouse receipts are continuously increasing. The latest warehouse receipts are 37,000 tons, the second highest level in nearly ten years.
2) Long positions in the US cotton market are continuously exiting, and the current holdings have dropped to 220,000 lots, the starting point of the rally, with longs actively exiting.
3) The weather has been favorable for the growth and planting of US cotton. Recent rainfall in Texas has helped improve soil moisture.
Points to Watch: Whether buying from Southeast Asia is active

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Tongzhou Cotton Market Brief, Week 4 of April 2024

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Tongzhou Cotton Market Brief, Week 2 of April 2024

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.

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Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
Tongzhou Cotton Market Brief, Week 1 of March 2025

Tongzhou Cotton Market Brief, Week 1 of March 2025

1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.

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Tongzhou Cotton Market Brief, Week 1 of March 2025
In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.

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In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.
President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.

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President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

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