Tongzhou Cotton Market Brief, Week 4 of May 2024

I. Zhengzhou Cotton
(I) Positive Factors
1) Positive market sentiment, generally strong macroeconomic expectations for commodities, and cotton prices below average are easily targeted by funds.
2) Structural contradictions in cotton are prominent, with tight Xinjiang cotton inventories and strong basis reflecting this factor.
3) Currently, cotton prices are undervalued, and large traders have reduced costs through options and other means, so cotton prices are very resilient, and funds will enter the market in a "pyramid" style if prices fall further.
(II) Negative Factors
1) Better weather in the new year for Zhengzhou cotton, with expected yield recovery and total production expected to increase year-on-year. Global supply is expected to be abundant in the new year, and cotton resources held by large traders will be less competitive in the following year.
2) In April, retail sales of clothing, shoes, hats, and textiles amounted to 104.8 billion yuan, a year-on-year decrease of 2%, and the year-on-year growth rate of clothing retail sales remains at a historically low level. With no significant increase in residents' income, cotton consumption remains rigid.
3) Downstream enters the traditional off-season, with a significant increase in downstream finished product inventories in the past week, and marginal changes in the industry have deteriorated.
II. American Cotton
(I) Positive Factors
1) High temperatures have been significant in the Texas region recently, and a high-temperature warning remains in place for the next month. Be wary of subsequent weather speculation.
2) The net long position of funds has rapidly dropped to 0%, reaching a historical low, indicating that this wave of long positions has retreated completely, and the multi-killing situation is expected to end.
3) The valuation of the July American cotton contract has now entered the mid-to-low range, and given the extremely low end-of-period inventory, the current price does not match the extremely low inventory-sales ratio.
(II) Negative Factors
1) Texas will experience heavy rain this week, which will help alleviate the impact of high temperatures and improve soil moisture.
2) Given that supply growth will exceed demand growth next year, it is more reasonable for American cotton prices to operate below the average.
3) To date, the weather in the United States and Brazil continues to be favorable for cotton production; there are no weather problems.
Focus: US weather

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Tongzhou Cotton Market Brief, Week 1 of June 2024

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Tongzhou Cotton Market Brief, 3rd week of May 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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