Weekly Market Report
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With Mark Dyson, Managing Director
July 15, 2011
Selling season ends on firm note
A LARGER offering nudging 59,000 bales was expected to put further downward pressure on the wool market this week, but it held up well to finish on a firm note leading into the sales recess.
The Eastern Market Indicator added 2 cents per kilogram to close at 1361c/kg clean.
The Australian dollar eased against the Greenback this week, with the marked in US terms drifting 13c/kg to 1446c/kg.
There was spirited competition in the auction rooms, especially from China, which helped underpin solid demand.
While finer wools continued on their softer trend, medium types in the 18-20 micron range performed well.
Despite a higher pass-in rate for Merino skirtings, better styles with low vegetable matter content were well supported.
Crossbreds and oddments were not so lucky, trending easier.
The mood remains buoyant heading toward the 2011-12 selling season, where demand levels are likely to be tested by larger auction volumes.
Australian Wool Innovation’s forecasting committee has estimated next season’s production to rise 1 per cent to 345 million kilograms. This prediction may yet prove conservative.
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