Tongzhou Cotton Market Brief, Week 1 of August 2024

I. Zhengzhou Cotton
(1) Positive Factors
1) After the sharp drop in Zhengzhou cotton prices last week, trading among various merchants accelerated, and currently, most of them have limited resources left. Spot market provides some support to the futures market.
2) After Zhengzhou cotton price fell below 14500, the immediate profit of spinning mills has turned positive. If the market stabilizes, the profit of spinning mills will be guaranteed.
3) The downstream is getting closer and closer to the demand turning point. If the market stabilizes temporarily, it is expected that some orders will be placed.
(2) Negative Factors
1) Large unsold cotton holders upstream are expected to sell in batches at the end of July and early August. On the one hand, options are about to expire; on the other hand, the expectation of a bumper harvest next year is relatively certain, and future supply pressure will increase.
2) The expected peak season has not arrived, and downstream fabric and spinning mills still lack orders. The "golden September and silver October" may be missed.
3) The expected output of Xinjiang cotton in the new year is still relatively optimistic. According to the forecast of the Xinjiang Meteorological Observatory, rain and high temperatures will arrive simultaneously next week.
II. US Cotton
(1) Positive Factors
1) There is no rainfall in the Texas region in the next two weeks. Closely monitor the impact of consecutive weeks without rainfall on the good rate.
2) US cotton has fallen below 70 cents, reaching the planting cost of US cotton, providing temporary support.
3) The July report lowered the initial inventory of India, tightening the India 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 US non-farm employment data is generally weak, and the market is beginning to trade the possibility of a US recession.
2) After falling below 70 cents, the breach of contract by downstream spinning mills has increased significantly, reducing near-term demand and increasing long-term supply.
3) Funds have been shorting US cotton for a long time. The latest weekly net long position of funds decreased by 1 percentage point to -16%.
Focus: US weather

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Tongzhou Cotton Market Brief, Week 2 of August 2024

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Tongzhou Cotton Market Brief, Week 5 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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