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The action of the market was within the rational expectation of the participants. After the previous leg of rally last week, prices touched higher level and then went down this week. In overall, prices dropped to a less extent and closed lower.

As far as the CCSE electronic market goes, the price drop this week has disrupted the sideways movement from the technical view. The market action suggested that a sharp and quick rise in prices before autumn cocoon crop wasn’t accepted.

In CCSE spot market, prices showed some correction responding to the moderate drop in electronic prices.