Tongzhou Cotton Market Brief, Week 5 of July 2024

I. Zhengzhou Cotton
(1) Positive Factors
1) After the sharp drop of Zhengzhou cotton last week, transactions among traders accelerated, and most of them have limited resources left. Spot market provides some support to the futures market.
2) After Zhengzhou cotton fell below 14500, the immediate profit of yarn mills turned positive. If the market stabilizes, the profit of yarn mills will be guaranteed.
3) Downstream is getting closer to the demand turning point. If the market stabilizes temporarily, some orders are expected to be issued.
(2) Negative Factors
1) Large unsold cotton holders upstream are expected to sell in batches in late July and early August. On the one hand, options are about to expire. On the other hand, the expectation of abundant production next year is relatively certain, and the future supply pressure will increase.
2) Downstream continued to reduce prices and sell off goods this week to increase volume, but the actual effect is not satisfactory. End demand is weak, and blended yarns are also reducing prices.
3) The quota is likely to be lowered around the end of the month, and the quota issuance is to increase supply in terms of nature.
II. US Cotton
(1) Positive Factors
1) There is no rainfall in Texas in the next two weeks. Closely monitor the impact of two consecutive weeks without rainfall on the quality rate.
2) US cotton fell below 70 cents, reaching the planting cost of US cotton, which has a temporary supporting role.
3) The July monthly report lowered India's beginning-of-year inventory, tightening India's balance sheet again. Coupled with the impact of the MSP policy, India's support for the external market has increased.
(2) Negative Factors
1) The expectation of a bumper harvest of US agricultural products is strong. Due to favorable weather, soybeans and corn have fallen below planting costs. Under the overall expectation of a bumper harvest of agricultural products, US cotton is also expected to fall below the cost line.
2) After falling below 70 cents, downstream yarn mills have significantly increased breaches of contract, reducing near-term demand and increasing long-term supply.
3) Funds have been shorting US cotton for a long time. The net long position of funds fell by 3 percentage points week-on-week to -15% last week.
Focus: US weather

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Tongzhou Cotton Market Brief, Week 1 of August 2024

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Tongzhou Cotton Market Brief, Week 4 of July 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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