Weekly Market Report
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With Mark Dyson, Managing Director
July 8, 2011
Bull run comeso a halt
THE wool market experienced an inevitable price correction this week after a strong bull run.
The Eastern Market Indicator dipped 50 cents per kilogram to settle at 1359c/kg clean, the lowest level since May 12.
A hint of increased wool supply in coming weeks appears to have caused more subdued activity from buyers.
This was illustrated by the auction catalogue unexpectedly jumping from the forecast 31,660 bales to 39,368 bales this week.
Furthermore, next week’s offering has been set at 59,349 bales, the highest level since mid January.
It also is understood that some companies have made significant sales outside of the auction system recently.
While the dip in prices was largely across the board, including most types of Merino fleeces, skirtings, crossbreds and oddments, demand was still solid.
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