Fluctuated widely (Sept. 21, 2005)
Author:
admin
PublishDate:
2005-09-21 16:52:00
Hit:
556
Electronic market prices fluctuated widely today after yesterday’s consolidation. Prices slumped almost at down limit in morning sessions, while pulled back in afternoon sessions quite different from depressed sentiment in the morning. The bounce power of dried cocoon seemed stronger than raw silk. Finally, prices closed lower for raw silk and higher for dried cocoon. Sept. raw silk touched the intraday lowest of 209300 yuan and closed at 210800 yuan. Active March’ 06 dried cocoon hit the low of 66000 yuan and closed at 67100 yuan, with 484 hands were traded.
As far as the comparatively high price is concerned, there are quite different points in the market. Some traders say history of the year 2003 will repeat itself, indicating that prices will hit historical high before autumn cocoon harvest and then go downward after the harvest. Someone say the imbalance between supply and demand will support current and further prices. Technically, the probability was small for prices to drop deeply in short term. Fundamentally, to a large extent autumn cocoon output will dominate the September and early October price movements.
Change Range Net position
Raw Silk for Oct. 2005 -1500yuan/ton 209300---212300 544
Raw silk for March 2006 -1800yuan/ton 210500---213500 1732
Dried Cocoon for Oct. 2005 200yuan/ton 64200---64800 18
Dried Cocoon for March 2006 300yuan/ton 66000---67100 2328