Correction is inevitable (Oct. 13, 2005)
Author:
admin
PublishDate:
2005-10-13 17:06:00
Hit:
565
Due to no sufficient follow through buying sentiment, electronic market prices dropped mildly by profit-taking activities of buyers, that is to say, the buyers were cautious in pushing prices higher due to the lack of confidence. The lack of upward momentum dampened the market, while some long-term factors will continue to affect the silk prices before the new crop year. However, the markdown of Nov seemed smaller than March, and price differences between the two delivery months reduced.
The correction today was most attributed to technical factors. Therefore, traders focused more than before on the market performance at critical points.
Fundamentally, raw silk offers from different mills differed much these days and confused many people.
Change Range Net position
Raw Silk for Nov. 2005 600yuan/ton 224900---226100 600
Raw silk for March 2006 -2400yuan/ton 225200---228200 2350
Dried Cocoon for Nov. 2005 -100yuan/ton 71900---72200 18
Dried Cocoon for March 2006 -800yuan/ton 71700---72700 3238