The cocoon silk market continues to maintain a wide-ranging bottom fluctuation, with all contracts showing divergent level declines. In the absence of fundamental news, the factors influencing and manipulating the market are mainly derived from the volatility of the capital market and market confidence. The dry cocoon 11083 contract fell by 1200 yuan, with 6 deals completed and an order volume of 36 batches; the dry cocoon 11093 contract opened high but closed low, with the lowest trading price at 86000 yuan and closing at 86300 yuan; the mid-to-long-term dry cocoon 12033 contract opened low but closed high, reaching a maximum price of 99300 yuan, before tailing off to close at 98200 yuan, down 600 yuan from the previous trading day.
The downgrade of the US credit rating has triggered significant fluctuations and declines in both domestic and international futures and stock markets. Meanwhile, China's national economy remains heated in some aspects. In July 2011, the overall consumer price level nationwide increased by 6.5% year-on-year. On the other hand, the latest data from the China Foreign Exchange Trading Center shows that on August 11th, the central parity rate of RMB to USD was reported at 6.3991, fluctuating by 176 basis points compared to the previous trading day. The RMB exchange rate reached a new high since the currency reform. All these indicate that the macroeconomic environment faced by the silk industry is very complex. Externally, there is a slowdown in global economic recovery and multiple credit crises in the US. Internally, there are issues such as interest rate hikes, increases in reserve requirement ratios, tightening monetary policies, continuously rising production factor costs, and sustained appreciation of the RMB against the USD. Overall, the market is under the shadow of macro conditions, facing significant pressure.
On August 12th, raw silk 11083 fell by 2300 yuan, closing at 325000 yuan, with a trading volume of 38 batches; raw silk 11093 fell by 3200 yuan, with a trading volume of 52 batches and an order volume of 664 batches. Raw silk 12033 traded 278 batches, falling by 4700 yuan throughout the day, breaking through the 300,000 yuan integer barrier, closing at 299100 yuan, approaching the lowest price of 292700 yuan on the 27th of last month, with the order volume decreasing from 970 yesterday to 956 today.
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