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ReturnElectronic prices reached new low level ( Sept. 24-Oct.12,2007)
Author：
admin
PublishDate：
2007-10-12 17:06:00
Hit：
484
CCSE electronic market made a further decline these days. Electronic prices touched new lows Friday with small trading volume. Active March’08 Raw Silk closed 177,000 yuan per ton. March’08 Raw Silk closed 54800 yuan per ton. October Raw Silk and Dried Cocoon closes 1772 yuan and 52160 yuan per ton respectively.
From fundamental view, the mid-autumn cocoon crop shows overall drop in output, quality and purchase price in Zhejiang’s Jiaxing and Houzhou regions and Zhejiang’s Yancheng region. The low quality crop, especially in low reelability percentage, was mainly due to bad weather conditions during mounting period. Especially in Jiaxing, average purchase price for mid-autumn cocoons this year is below 750 yuan per 50kg, a large decrease compared to 1040 yuan for year 2003, 814 yuan for year 2004, 1090 yuan for year 2005 and 1520 yuan for year 2006. Raisers’ enthusiasm in raising silkworms was weakened at the low price level. However, climate changes hadn’t fueled electronic prices just like the market scenario of the previous years. Maybe the key to cocoon and silk prices this year hinges on demand side. The market is seeking new support level.
Some industry insiders think the recovery of prices isn’t expected to be rapid unless the export outlook improves significantly. On the contrary, some sentiment traders disagree because inflation is the general tendency for prices to rise.
Daily Chart for Spot Month Raw Silk Unit: 10000 yuan per ton
