These days CCSE electronic prices rose sharply amid the silkworm production estimate that fueled concerns about a shortage. Dominate Raw Silk for September delivery opened 188700 yuan last month and closed a new high 204600 yuan Friday with enlarging positions. Dried Cocoon for September delivery opened 61600 yuan last month and closed 65400 yuan this weekend. This year electronic trading for raw silk is more active than dried cocoon.
Fueling the rise were reports that Guangxi’s spring cocoon crop appears lower quality till now. And meantime Zhejiang’s distribution volume drops 10 percent compared to same period last year.
The significant point to note is that production cost including labor cost, Renmingbi evaluation, domestic inflation, rising taxes burden and other cost increases sharply for silk reeling and weaving mills compared to previous years.
As a result, raw silk spot prices hesitated at low levels so long and finally the price rise came in April. At the same time, the uptrend in the electronic market has also left its impact on spot prices.
Now in CCSE spot market, raw Silk is quoted above 10000 yuan per ton as against last month.
CCSE’s circulars in early April about abolishment on top ten member menu release on position volume every week and deduction on transaction fee also help fund inflow and enlarge trading volume.
Daily Chart for Sept. Raw Silk
Unit: 10000 yuan per ton