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Cocoon & raw silk trends extend gains
Mar '11
On March 24, cocoon and silk markets in Guangxi province closed on positive note registering price rise in most of the segments. Markets extended high-level consolidation and climbed further mainly due to news of rise in exports.

Though dry cocoon markets remained deserted and more than half the contracts failed to attract attention, still prices registered upward trend.

Dry cocoon May contract 053 witnessed price rise by 1,500 Yuan, closing at 116,000 Yuan per ton while main September contract 093 rose 1,400 Yuan, closing at 110,200 Yuan.

On the other hand, raw silk market witnessed some activity and several contracts closed slightly higher. While nearby week contract 034 was up 300 Yuan closing at 391,800 Yuan per ton, April contract 043 registered a rise of 300 Yuan, closing at 392,700 Yuan.

September contract 093 recorded rise of 200 Yuan, closing at 363,800 Yuan per ton.

China's total textile and apparel exports were worth US $32.06 billion for the first two months of this year, up 13.56 percent on year to year basis. Though, the growth rate significantly came down from 38.58 percent in January, overall export environment of China's textile sector is still positive

At present the only bad news is from the mulberry crop segment. Due to colder weather for last few months, growth of mulberry is not satisfactory in China. In addition to that, sericulture conditions are still immature. Because of these factors, arrival time of spring cocoons to the market is expected to be delayed.

Fibre2fashion News Desk - China

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