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wool Market Report 5th July 2007
5 Jul 2007
Wool Market struggles on higher dollar…
- The wool market was expected to perform well this week, being the last sale before the three week Auction recess, and with good quality wools on offer. However, the Australian dollar surprised the market by trading up 1 whole US cent to set a new record by trading at 86 US cents.
- With the higher currency the wool market responded well with the majority of micron categories “maintaining” their current levels to finish basically unchanged on Tuesday.
- Wednesdays sale saw a similar result with some micron categories recording only slight gains. The western market eased back into line with the Eastern market.
- Forward markets have been slightly turbulent with many conflicting expectations leaving the market unsure of the current market direction.
- The discounts between the physical market and the forward market has become less due to the physical market falling at a larger magnitude to the forward market.
- Major auction buyers this week were Itochu Wool (5,832 bales), A.S. Gedge (5,460 bales) and Techwool Trading (5,431 bales).
- Sales resume after the 3 week Auction recess. Currently S05 is rostered for 72,000 bales selling in all 3 selling centres.
- The next 3 weeks is the Auction recess, so the Wool Weekly will not be published until 3rd August. Forward markets will be operational as usual allowing woolgrowers the opportunity to hedge future productions. Landmark Risk Management will be open for business as usual throughout the 3 week recess.
- The staff of Landmark Risk Management will be at Sheepvention on the 6th and 7th of August, and look forward to meeting in person Woolgrowers and recipients of this publication.
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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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