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No future for bank wool arm
11 Aug 2004
Wool brokers have been left stunned by Macquarie Bank's decision to close its wool futures business. Both Landmark and Elders said the decision was totally unexpected and a shock.
A Macquarie Bank spokesman said the bank is closing the wool service to concentrate on sugar and cotton. Other reasons include a shrinking wool market and growers' reluctance to forward commit with futures contracts. He also cited tighter financial services regulations for brokers.
The business was established in 1994. Two years ago Macquarie Wool Futures reported an annual trade of 37 million kg clean, equal to 350,000 bales, of which 200,000 bales would have been on behalf of wool producers. But since then, despite intense marketing, growers have remained reluctant to "go forward".
Despite the closure, all existing forward contracts will be covered by Macquarie Bank.
Weekly Times, 11/8/04, page 7.
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