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Wool Market Report
23 Mar 2007
What goes up must come down?
- After two weeks of price rises the market has come back with a thud this week. Price levels compared to last week are back a good 30 to 40 cents.
- It is important to keep this price fall in perspective, the market has fallen from a very high base.
- Forward markets have been extremely active with growers selling forward. As with the physical market the forward market did come back this week but not to the same extent. The forward markets had already factored in this price fall late last week and earlier this week.
- This market has reacted to several recent factors. On Monday the wool sale roster was updated showing relatively larger volumes coming onto the market. The Australian dollar has shown considerable strength to push through and maintain a level above the 80 US cent mark.
- As mentioned last week technically this market has risen to test the seasonal highs made in January. Prices have failed to push above this level, in to new territory, indicating a strong resistance level.
- Major auction buyers were ABB export (4,999 bales), Chargeurs (4,294 bales) and AS Gedge (3,932 bales).
- Sales resume next week in Sydney, Melbourne and Fremantle with a total offering of 62,193 bales.
Speciality Ultra fine wools…
Landmark-Jackson of Geelong offered an exceptional catalogue of ultra-fine wool at Thursdays sale last week. Top price for the day was a bale of Jemala branded Fibre excellence, 12.4 micron 41nkt wool which sold for 75,000 c/kg greasy. Also an ultra-fine fleece measuring 10.7 micron produced by The Wool Factory has won the Australian 2007 Ermenegildo Zengna Vellus Aureum Trophy. This fleece is now eligible to enter the international competition where the winner will receive gold to the weight of the “golden fleece”.
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For further information on the wool industry email Landmark or see the Landmark website.
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by Malcolm Condie
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