Weekly Market Report
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With Mark Dyson, Managing Director
January 20, 2012
Market does a U-turn
JUST when we thought we were on a good thing after the opening wool sales for 2012, the market has done a U-turn this week.
The Eastern Market Indicator has closed down 26 cents per kilogram to 1190c/kg clean as buyers enthusiasm waned in the face of another larger offering.
This week’s 58,409-bale catalogue and the 50,000 plus bales auctioned last week are the largest offerings for some time.
The market tone is one of cautious optimism and buyers remain confident of improved conditions following the Chinese New Year period, which has been the trend in the past.
It was encouraging that by the close of sales this week a firming trend was evident.
The market produced solid results for clean, bright and well prepared fleece types with good vegetable matter (VM) levels. Strength, or the lack thereof, did not cause significant discounting.
Buyers appear keen to build their stocks of high yielding, quality fleece types.
Oddments continued to be strongly supported and finished in positive territory, with well prepared pieces and bellies with low VM also performing well.
Crossbred wools remained in high supply, however demand was good up to a certain price level.
Nearly 44,000 bales is set to go under the hammer next week and the market is expected to settle at current levels.
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