Home
About Us
Marketing Options
Inputs & Merch
Livestock Marketing
Our Team
Services
Contact
| Weekly Market Report News Testimonials Selling Roster Useful Links |
Weekly Market ReportFor the latest edition, please refresh this page With Mark Dyson, Managing Director
October 28, 2011 Wool market jumps as Chinese buyers step up
RENEWED competition in the wool market this week pushed the Eastern Market Indicator 57 cents per kilogram higher to reach 1215c/kg clean.
The sharp rise also occurred despite a strong Australian dollar, with the market lifting 95c/kg in US terms to notch 1275c/kg US.
All Merino fleece enjoyed solid demand and healthy gains, with 19 micron types in Melbourne jumping 99c/kg to 1491c/kg and 21 micron wools up 81c/kg to 1334c/kg.
Cardings were well supported as well and finished in positive territory, while crossbred wools were the only sector to lose ground, albeit only marginally. It is understood there is some difficulty moving these stocks through the pipeline.
Chinese buyers jumped off the fence and hit the market strongly this week after holding back with the expectation that supply would slowly increase leading to Christmas and growers may be willing sellers.
However, the reverse has been the case, with many growers resisting the downward pressure in recent weeks and either withdrawing their wool or passing in portions of clips.
Whilst this strategy is building a mini stockpile, many growers who would traditionally sell in the New Year also are offering their clip sooner. Exporters are aware of this and many are anticipating a shortage of wool in the New Year.
This expectation, along with a general desire by processors to build stocks in the pipeline, has combined to create a squeeze on the market.
The effects of the EU fiscal decisions appear to be creating “headline trading’’ fluctuations in global markets. The wool market could well be caught up in this euphoria.
In futures markets, the near month contracts are level pegging with the spot market and although the distant months remain at a discount, there is increased volume being traded that is breathing a little life back into the Sydney Futures Exchange market.
Recent Issues
|
Marketing Options
Inputs & Merch
|
Quality Wool offers a full range of low-cost marketing options to growers, including auction, electronic selling (Wooltrade), private buying, forward contracts, consignment and export. 
Quality Wool also offers a complete range of farm inputs and general agricultural merchandise through our subsidiary, Quality Rural. We are able to offer products at the most competitive prices, delivered promptly and efficiently, and backed by reliable service and support.