Hiked sharply on renewed buying interest (Sept. 12)
Author:
admin
PublishDate:
2005-09-12 17:06:00
Hit:
595
Today was the last trading day of Sept.’05. Quite different from the depressed sentiment during the recent consolidation, the market on CCSE was lifted significantly on renewed buying interest. Sept.’05 raw silk and dried cocoon settled at 206300 Yuan and 62900 Yuan, with last delivery volume (position also called) reaching 752 hands (451.2 tons) and 66 hands (330 tons) respectively. March’06 raw silk performed particularly well, which rose 5400 Yuan to reach 207200 Yuan per ton. The price of March’06 raw silk became higher than Sept.’05 for the first time. But the buying energy was worrying by the policy actions with the upcoming autumn cocoon harvests.
Whether the uptrend will last or not will depend on the inflow of fresh buying capital and the new crops in Zhejiang and Jiangsu region as well as the reaction of spot market. The repercussion from prompt market will be crucial.
Fundamentally, it seems without obvious bullish news in spot market to date.
Change Range Net position
Raw Silk for Sept. 2005 2400yuan/ton 203900---206300 752
Raw silk for March 2006 5400yuan/ton 201800---207200 1786
Dried Cocoon for Sept. 2005 900yuan/ton 62000---62900 66
Dried Cocoon for March 2006 1600yuan/ton 64000---65700 2204