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wool Market Report 4th May 2007
4 May 2007
Wool Market steady, but cautious…
- A two day sale this week which saw the wool market generally remain stable across all micron categories. The largest gains were recorded in the northern 16.5 micron indicator which gained 18 cents on a limited selection.
- The Woolmark company released a report this week indicating that while current demand for wool is strong, the overall projection for wool will be down. The reasoning behind this bearish sentiment was that global economic conditions are showing weakness, wool orders from China were starting to soften and pipeline wools stocks had returned from a low base to a normal level.
- The report also mentioned, from recent AWTA test data, that production may not fall as much as original forecasts have suggested. Supplies at auction may be higher than the market expects. Furthermore, with Wool prices (medium wools in particular) in US dollar terms near 17 year highs, this has placed Wool relatively expensive against competing fibres such as cotton and synthetics.
- Major auction buyers this week were Itochu wool (4,401 bales), Kathaytex (4,236 bales), and A.S. Gedge (4,165 bales).
- Wool sales resume next week in Sydney, Melbourne and Fremantle, over 2 days with a total offering of over 45,000 bales.
- Top price paid for Ultrafine bale…
- Speciality fine wool marketers, Landmark-Jackson of Geelong, sold this week a bale of 12.2 micron Ultrafine wool for a price of 90,000 c/kg greasy. The bale was produced from shedded sheep, branded Kadinia/Brim, and tested 12.2 micron, 0.1vm and yielded 68.3%. The bale was purchased by Associated Wool Exporters on behalf of Cheil Industries Korea.
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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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