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Cocoon & raw silk prices still continue to climb
Nov '10
At present, the last batch of autumn cocoon is actively entering the market in Guangxi; purchase price of dry cocoon has exceeded 100,000 Yuan per ton, which is seen difficult to decline, even if influenced by more bearish news.

Dry cocoon market continued to rise on October 29. Forward week contracts increased faster than nearby week contracts. Contract 10104 rose 200 Yuan to close at 91,000 Yuan per ton and contract 10113 rose 400 Yuan to close at 92,100 Yuan.

Forward week contract 11033 rose 1600 Yuan to close at 97,800 Yuan. Dry cocoon market continued to rise modestly, foundation was very strong, and therefore, the market is unlikely to decline in the recent future.

Raw silk contracts witnessed mixed trends, but the mainstream still showed an upward trend. Contract 10111 rose 500 Yuan to close at 340,000 Yuan, 2011 March contract rose 2400 Yuan to close at 341,300 Yuan, forward month contract 11093 rose 1900 Yuan to close at 322,600 Yuan. Raw silk market has seen volatility in recent sessions.

The National Silk Office issued a bulletin of the results of open bidding for state reserve raw silk. The average purchase price of this open competitive bidding is 303,272.65 Yuan / ton.

Fibre2fashion News Desk - China

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