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This spring crop season’s cocoon and silk market was a pronounced disappointment to the bulls. Despite weather and crop reports and cost increase were about as bullish as could be imagined, but the market continued the recoil this month. Sept. and March’08 Raw Silk closed 186000 yuan and 193200 yuan this weekend. Sept. and March’08 Dried Cocoon closed 56900 yuan and 59800 yuan respectively.

Weak global consumption forecasts and lack of speculation affected the price movement.

Daily Chart for Sept. Raw Silk
Unit : 10000 yuan