Prices are also currently still in the overall down trend channel between 51.50 and 45.50 parameters.
Whilst we can expect the lower ends of the trading range to hold fast, a break of 48.00 would undoubtedly test out the lower end of the channel.
ECOM Weekly China Market Recap: Chinese domestic prices have continued to weaken in the cash markets over the last week, again reflecting both the so far underestimated crop size as well as the high amount of available stocks both in and at the port of China.
Added weakness has been infused by the recent drop in NY futures prices.
Exchange prices in the ZCE and CNCE have stabilized somewhat over the past week, particularly the CNCE which has seen some domestic trader interest of late.
Improvements to the Xinjiang crop across it's finishing has seen estimates for this crop escalate considerably over the last 2-3 weeks, which could eventually drive the Chinese total output to in excess of 6.5 million tons, which is a much larger figure than early season estimates of 6.1MT.
marketing@alchempro.com
