Prices Rallied With the Upside Weakening ( June 23-29,2007)
Source: CCCT Date: 2007-07-02
CCSE electronic prices have seen a rally this week as they recovered some of last week’s decline. However, prices dropped slightly Friday, showing lack of some confidence among market traders. July Raw Silk opened 190370 yuan and closed 195170 yuan. Sept. Raw Silk opened 189680 yuan and closed 195380 yuan, with anticipated delivery volume decreasing by 114 hands. March 2008 Raw Silk rose by 4500 yuan to close 203400 yuan, with anticipated delivery volume increasing by 130 hands.
The absence of fresh supportive news coupled with the market’s ability to satisfy the technical objectives of breaking above previous highs sent prices upside weakening. It means traders should exercise extra caution in the coming weeks.
From statistics released by State Cocoon & Silk coordination Office, average fresh cocoon purchase price move between 962 yuan to 1005 yuan per 50kg during June 18-25 in the nationwide. 1167 yuan per 50kg for Jiangsu province, 1098 yuan for Shandong province and 1050 yuan for Henan province. On the other hand, the government side wishes to maintain prices ascending with stable state, showing some downside space limit in a short period.
Summer Silkworm eggs were distributed to raisers around June 21th in Jiaxing and Huzhou regions. In Haining, 17000 boxes of summer silkworm eggs were distributed, 15 percent higher than same period last year.
Compared to the electronic market fluctuation, the sport market is more stable this month. Raw silk performance seems less active than silk fabric.
