Price corrected and closed lower (Oct. 28,2005)
Author:
admin
PublishDate:
2005-10-28 17:06:00
Hit:
552
Electronic market price pulled back by the selling power and closed much lower today after four consecutive days rise. However, November month dropped slightly and showed stronger defense based on the current bullish spot market. The correction is very essential from the technical view as well as from the market sentiment. Whether the drop will last or not will depend on the inflow of fresh selling capital as well as on the reaction of spot market.
As stock was weak in marketing areas, the sales and production ration was at a relatively high level. It’s an effectively factor to prevent traders and mills from active selling. In CCSE spot market, silk yarn sustained at high levels in so-so volume. The sharply rise has slowed down import flow. The repercussion from physical market will be very crucial.
Change Open-close prices Net position
Raw Silk for Nov. 2005 -900yuan/ton 234800---233900 536
Raw silk for March 2006 -3000yuan/ton 233300---230300 2442
Dried Cocoon for Nov. 2005 -600yuan/ton 75500---74900 28
Dried Cocoon for March 2006 -1000yuan/ton 72900---71900 4546