Weekly Market Report
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With Mark Dyson, Managing Director

October 21, 2011
Closing price rally helps maintain levels
A PRICE rally on the final day of sales reversed an earlier dip in the market this week.
It was positive to witness medium wools actually firm strongly toward the end of sales in Melbourne to finish 5-15 cents per kilogram dearer.
The Australian dollar largely held steady and no further negative developments in world economics appears to be at least generating a little more confidence among textile processors.
The Eastern Market Indicator edged down 2c/kg to close the week at 1158c/kg clean. The pass-in rate remained high at 13.8 per cent of the 45,000-bale offering.
Superfine wools in Newcastle and in the New Zealand catalogue in Melbourne were hit hardest. European buyers were reasonably active with these types, however Chinese and Indian buyers preferred the broader end of the market.
Merino skirtings enjoyed a much better result in all centres this week, going against the market trend. Most types enjoyed good support and improved values across the range, including wools with higher vegetable matter.
Crossbreds were in short supply and good support at current levels from the trade saw them finish only marginally lower.
Offerings of around 42,000 bales per week are expected over the coming three weeks and there is good anticipation for the performance of medium wools in the market.
The Sydney Futures Exchange also is reporting a small but solid improvement in the futures market for 21 micron wool contracts.
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