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This week we see hike in CCSE electronic market prices due to the expectation for autumn cocoon output decrease. Friday China Cocoon & Silk Coordination Office sent an early warning on the booming prices. Responding to the news, electronic prices dropped sharply at weekend. It’s noteworthy that the anticipated delivery volume of Sept. Raw Silk decreased from 854 hands of last week to 408 hands this week.

Currently the market was around the news of farm drought and silkworm toxicosis caused by agricultural-chemical in Zhejiang. Every player became more concerned about the weather than before. Weather remains the dominant factor shaping the near-term outlook. According to traders, the intensity of the move caught the market by surprise as technical and fundamental factors favored the price gains that carried dried cocoon and raw silk to a new high.