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Wool experts see bottom of market
16 Apr 2004
Wool industry analysts say the 30 per cent market decline over the past 12 months may be close to bottoming. Landmark's Ross Bawden said yesterday there are some positive signs going into next week's resumption of auctions following the Easter break, including the freefall in the $AUD and the fact that prices didn't weaken as much as expected in the week before Easter, when 85,000 bales were offered. The benchmark eastern market indicator closed at 768 cents/kilogram, a fall of only 13 cents for the week. He doesn't expect a big change in the market when sales resume, and he's optimistic of some improvement in fine wool prices although mid-micron wools are likely to be steady. Mr Bawden said the wool futures market strengthened during the break.
Elders' Mark Rodda said although there's no sign of a dramatic recovery in demand from China, the signs of a floor in prices is encouraging.
The Woolmark Company has forecast stronger prices in the next three to six months, particularly for finer wools.
The West Australian, 16/4/04.
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