According to monitoring by the SunSirs commodity market analysis system, as of August 31, the domestic spot price for Grade 3128B lint cotton stood at 18,419 RMB/ton—an increase of 5.63% since the beginning of the month—marking a new high for the year.

On August 31, the dominant Zhengzhou Cotton contract (CF2701) fluctuated weakly during the day session, closing at 17,125 RMB/ton—a decline of 75 RMB/ton (0.44%) from the previous trading day. On the prior trading day (August 28), the contract had closed at 17,180 RMB/ton, up 150 RMB/ton.

The downward pressure stemmed primarily from the spillover effect of overseas markets. Last Friday (August 28), the benchmark December contract for ICE U.S. cotton faced selling pressure from profit-taking; it settled at 91.38-91.46 cents per pound, marking a decline of approximately 1.11%. This followed a sharp 3.67% rally on August 27, which had pushed the price to 92.75 cents per pound—a high not seen since April 2024. However, after prices hit a more than two-year peak, bullish investors moved to lock in profits and exit their positions ahead of the weekend. This pullback in overseas markets directly dampened bullish sentiment in the Zhengzhou cotton market.

In the short term, Zhengzhou cotton futures are likely to maintain a range-bound, slightly bearish trend; the downside is supported by reserve cotton auction results and expectations for the peak season, while the upside is constrained by a pullback in overseas markets and anticipated increases in supply.

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