Price bounced, consolidation cautiously (Aug. 22,2005)
Author:
admin
PublishDate:
2005-08-22 16:47:00
Hit:
574
Electronic contract prices in CCSE bounced on Monday. Cocoon and raw silk prices both rose at relatively high levels in morning sessions. However, raw silk price dropped a little and dried cocoon price continued the rise respectively in afternoon sessions. Dried Cocoon for March 2006 rallied from the low of 62300/ ton to today’s high of 63300 Yuan/ton, 1000 Yuan having been lifted.
Meantime, the decreased anticipated delivery volume(position also called)in front delivery months and the increase in back months indicated that both sides were liquidating in front months and had more interest in back months. But little new capital has entered the market till now. Whether the bounce will last or not will depend on the inflow of new buying capital as well as on the reaction of spot cocoon and silk market. Currently, Many traders keep on sidelines awaiting the autumn cocoons harvesting season when large amount of cocoon and silk will hit the market.
From the physical view, raw silk originated from Sichuan Province is quoted about 213000 Yuan in CCSE. Raw silk from Zhejiang and Jiangsu is quoted about 215000 Yuan. For the moment time, the spot market is very crucial to the following moving trend.