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Wool market report
22 Jun 2007
Wool Market Falls Despite Small Offering…
- Despite the smallest offering of wool for the season at this weeks auctions, the wool market continued on its current downward trend. The Eastern Market Indicator ended the week on 956n, down 29 cents from last Thursday.
- Falls of as much as 60c/kg were recorded for the finer microns, and medium micron prices fell away by 20 to 40 cents.
- The 20 micron indicator is the only micron category that is now above the 90th decile. However, it is important to bear in mind that woolgrowers have not been able to obtain these current prices for over 3 years.
- The Australian dollar may have contributed to the falls in the wool market, as it shows no signs of weakening, trading well above 84 US cents.
- Prices on the forward market fell by at least 20 cents in the front months on the results of this weeks sales results. Despite the expectation of next seasons supply being well below this previous season, analysts continue to hold a bearish outlook into next year, while growers continue to be optimistic that demand will be strong enough to hold prices at these high levels.
- There are only 2 more wool sales left for the season, followed by a 3 week sale recess. Volumes for both sales are well up on this last week, with over 59,000 bales expected up for auction next week and over 64,000 bales the week after, which is up 10% on the previous estimate (up over 10,000 bales).
- Major auction buyers this week were G Schneider (2,524 bales), A.S. Gedge (2,097 bales), and Techwool Trading (1,925 bales).
- Wool sales resume next week over three sale days, in Sydney Melbourne and Fremantle.
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For further information on the wool industry email Landmark or see the Landmark website.
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by Anthony Boatman
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