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CCSE electronic market retreated from recent highs this week. Sept. Raw Silk closed 191480 yuan, down by 3000 yuan per ton. March’08 Raw Silk closed 197100 yuan, down by 4800 yuan per ton. Sept. Dried Cocoon drooped slightly to close 62380 yuan. March’ 08 Dried Cocoon dropped by 1900 yuan per ton to close 64900 yuan.

The price drop this week was mainly due to the consumption worries, hence, electronic buyer side despised selling forces and then defeated for the time moment. But how the market will go is still of much uncertainty.

On the other hand, there are several unfavorable factors to influence the autumn silkworm production this year. Autumn cocoon drop probability also exists in some regions. Meantime, according to customs statistics, pure silk commodities export dropped by 4.18 percent to 2.026 billion US dollars from Jan. to July, but July’s export was the highest monthly value recorded in the first seven of this year. Some insiders said relatively stable price helps resume and increase market demand.

Daily Chart for March Raw Silk　　　Unit: 10000 yuan per ton