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wool Market Report
27 Apr 2007
Wool market firms…
- A two day sale this week, selling on Tuesday and Thursday due to the Anzac day public holiday on Wednesday.
- Expectations for Tuesdays sale was of a dearer market due to the Australian dollar decreasing by almost 1 whole US cent. The Australian dollar decreased due to a weaker inflation report. As expected the market opened up generally 10 to 15 cents in the Melbourne Auction. The Sydney sale did not follow the lead of the Southern market and closed generally unchanged on Tuesday.
- Unusually the southern market indicators reported decent premiums over the Northern market. This large differential would definitely be closed as buyers move orders to the cheaper selling centre. Thursdays market saw the north / south differential close with the southern market easing back into line relative to the northern market.
- Overall the Wool market recorded gains of 10 to 15 cents compared to last week. The 26 micron southern indicator recorded the largest gains increasing 29 cents. The crossbred 32 micron northern indicator recorded an 8 cent fall, on a small selection compared to last week.
- Forward markets continue to be active with woolgrowers selling forward productions. Some woolgrowers are enacting long term hedging strategies seeking price protection for the next 2 seasons. History has shown that high prices are rarely sustained over multiple seasons.
- The Eastern market indicator is currently trading at 937 which is almost in the 90% decile. 20, 21 and 22 micron categories continue to trade above 80% deciles.
- Major auction buyers this week were Itochu wool (4,875 bales), AS Gedge (4,458 bales), and Techwool (3,506 bales).
- Wool sales resume next week on Wednesday and Thursday in all three selling centres.
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For further information on the wool industry email Landmark or see the Landmark website.
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by Peter Tustin
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