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wool Market Report
20 Apr 2007
Wool holding up to high dollar…
- The wool market has had a 2 week recess due to the Easter break. During this time the Australian dollar has increased by over 2 US cents.
- Expectations for this weeks sale was down due to the high Australian dollar and increased forecast of recent sale offerings. Over the Easter break forward markets factored in a price fall this week with prices easing.
- Prices eased this week, but not to the level as expected, which is a good sign for the wool market. Overall the market was down 5 to 25 cents, with the medium microns in the southern market recording the largest falls. Some micron categories, such as the fine micron groups in Sydney and Fremantle, recorded small price gains.
- Forward markets are now starting to firm and regain confidence. Forward market activity over the Easter break was subdued compared to the pre Easter activity. Price levels for 2007 and 2008 are at a discount to the current market, however the levels are still historically high, compared to last year.
- The bull run with the Australian dollar has set new records. The Australian dollar is now trading at a 20 year high. Australian commodity exports, such as wool, costs more in US dollar terms to our international customers, which can affect demand for the commodity.
- Major auction buyers this week were Techwool (5,704 bales), AS Gedge (5,407 bales), and Itochu wool (4647 bales).
- Wool sales resume next week on Tuesday and Thursday in all three selling centres. Wednesday is the Anzac day public holiday.
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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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