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Cocoon & silk prices to maintain fluctuating trend
Nov '10
Cocoon and silk market maintained upward momentum in Guangxi province on November 18. The most active dry cocoon contract 11033 of forward month fell 400 Yuan to close at 101,100 Yuan per ton, other dry cocoon contracts slightly increased, market offers maintained above 97,000 Yuan per ton.

The most active contract 11033 of raw silk rose 1200 Yuan to close at 353,700 Yuan per ton, but trade volume and orders reduced, contract 11033 declined from 357,000 Yuan in the morning to finally close at 353,700 Yuan per ton with a big downward shadow line. Both long and short sides held strong wait-and-see mood and traders in the market were cautious.

Support from fundamentals to the operation and development of silk industry has not shown basic changes under the changing economic environment in recent time. The market has insufficient momentum to realize significant increase or decrease, cocoon and silk market is expected to mainly continue a fluctuating trend at high price.

Fibre2fashion News Desk - China

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