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Weekly Market Report

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With Mark Dyson, Managing Director

September 23, 2011

Uncertain climate, larger volumes soften prices

THE uncertain economic conditions ruling the globe and larger wool volumes at this time of year combined to soften market prices this week.
 
The Eastern Market Indicator shed 39 cents per kilogram to close at 1235c/kg
clean.
 
The Australian dollar again weakened against the Greenback and is now close to parity with the US dollar.
 
Buyers continue to exercise caution and have been selective with their purchasing in the face of rising fresh wool supply.
 
The volume offered at sales so far in the new selling season has jumped nearly 14 per cent compared with the same period last year, albeit that was impacted by the adverse weather.
 
A total 51,347 bales were put under the hammer this week and the more subdued demand caused the pass-in rate to climb above 22pc.
 
Finer 17-18 micron Merino fleece was most affected by the downturn, however wools of 23 and 30 microns also dipped more significantly in Melbourne.
 
Good style skirtings faired better and remained in positive territory, while solid demand also was maintained for crossbreds and cardings.

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