Tongzhou Cotton Market Brief, Week 4, August 2024

I. Zhengzhou Cotton
(1) Positive Factors
1) Powell's speech last Friday confirmed the September interest rate cut, creating a relatively favorable macroeconomic environment for the vast majority of global assets.
2) Recently, downstream textile mills have been stocking up and purchasing, with demand slightly improving, and some brands have issued orders.
3) The release of short-covering positions after the price fixing is over, and short positions at relatively low levels also need to exit for profit.
(2) Negative Factors
1) From recent orders, it can be seen that the ordering time of downstream companies is relatively short this time, and demand is expected to weaken again in September and October.
2) Based on the current opening price of cotton in Hubei and other places at 3.3-3.6 yuan/kg, it is lower than last year's opening price of 4-4.2 yuan/kg. The acquisition is significantly calmer in the early stage, and the risk preference of cotton ginning plants is low.
3) After the new cotton is listed, there is no possibility of rush harvesting, but after listing, there will obviously be hedging pressure, and there is potential pressure on the market.
II. US Cotton
(1) Positive Factors
1) Powell's speech last Friday confirmed the September interest rate cut, creating a relatively favorable macroeconomic environment for the vast majority of global assets.
2) Since early August, the Texas region has been experiencing high temperatures without effective rainfall. Currently, the quality rate of US cotton has been significantly affected, and the yield of US cotton is expected to be affected, and subsequent weather needs to be closely monitored.
3) India's planting progress has been hovering around 11.1 million hectares, and the market is also increasingly worried that the planting area will not meet expectations.
(2) Negative Factors
1) The August monthly report has reduced US cotton exports due to lower-than-expected Chinese quotas, increasing pressure on the United States.
2) Temperatures in Texas have gradually decreased this week and there will be rainfall, with weather conditions improving week-on-week.
3) Funds have been shorting US cotton for a long time, with the latest weekly net long share reaching -18%.
Focus: US weather
 

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Tongzhou Cotton Market Brief, Week 1 of September 2024

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Tongzhou Cotton Market Brief, 3rd week of August 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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