Wool Market Report
29 Jun 2007
Wool Market Bounces…
- The wool market has seen a volatile week, experiencing large falls on Tuesday and Wednesday, then recovering ground on Thursday. The Eastern Market Indicator ended the week on 931c/kg, down 15 cents from last week.
- Falls of as much as 40c/kg were recorded across all microns on Tuesday, and a further 10 to 15c/kg on Wednesday. Prices recovered by 10 to 20 cents on Thursday.
- All micron indicators are now below 90th deciles. The Eastern Market Indicator has fallen from a high of 1025 to 921 within a month, 19 micron has fallen over 150 cents, 20 micron by 110 cents, and 23 micron by 90 cents in this time.
- Despite the negativity this week, prices on the forward markets have shown some resilience, gaining 15 to 20 cents on Thursday, effectively continuing to narrowing the discount to the physical. This can present good hedging opportunities for growers seeking to lock in future production at attractive levels.
- Sales resume next week, with one of the largest sales seen this year. Over 75,000 bales are up for auction next week, with a three week recess to follow. Despite no wool sales, forward prices will still be available during the auction recess.
- Major auction buyers this week were A.S. Gedge (5,305 bales), ABB Wool Export (4,267 bales), and Techwool Trading (3,613 bales).
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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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