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wool Market Report
30 Mar 2007
Wool Market drifting lower…
- The wool market has been drifting lower now for over two weeks. On the 16th of March the 21 Micron indicator was 1051 and 1034 in the north and south Respectively. This is a fall of 50 to 70 cents over 2 weeks.
- It still is important to keep this price fall in perspective, in that the market is coming off from a high base. This time last year the average Northern and Southern 21 micron indicator was at 764 cents. We are still above that level by over 200 cents.
- This market has reacted to several recent factors. The recent large auction offerings have seen good quantities of wools available and also coming on to the market in the next few weeks. The Australian dollar has climbed to historically high levels and seems quite happy to remain well above the 80 US cent level.
- Forward markets continue to be active with woolgrowers looking to hedge future productions. Although the forward markets are in backwardation (discount) keep in mind that this market has fallen 50 to 70 cents in two weeks.
- Passed in rates are high, resulting from a falling market. Interestingly the northern market was quite low compared to the other selling centres.
- Major auction buyers were AS Gedge (3,973 bales), Williams wool (3543 bales) and Kathaytex (3503 bales)
- Sales resume next week in Sydney and Melbourne only, selling on Tuesday and Wednesday as Friday is a public holiday. The following week is the Easter sale recess.
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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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