Weekly Market Report
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With Mark Dyson, Managing Director
January 14, 2011
Happy new year for wool market
IT has been a bright opening to the new year for the wool market, with the Eastern Market Indicator soaring 121 cents per kilogram this week to notch 1152c/kg clean.
This equated to more than a 10 per cent jump in the market compared with the previous sale before the Christmas recess.
Just under 50,000 bales were put under the hammer and, as a result of the strong demand, only 2pc of the offering was passed-in.
A Melbourne-only sale on Tuesday kicked-off the healthy competition this week, with most wool types enjoying strong price gains.
Finer wools performed particularly well, with those measuring up to 19.5 microns posting increases of around 15pc.
Prices for medium to coarser types jumped by about 11pc.
The strong demand continued for skirtings and crossbred wools attracted plenty of attention too, while oddments recorded increases of around 5pc.
China dominated the buying activity in the auction rooms, although European buyers also figured prominently, supporting the strong price gains for fine wools.
India, Korea and Taiwan contributed healthy support this week too.
The significant market jump was put down to a number of factors, including the reduction in the wool production forecast late last year.
Next week’s national wool auction offering has been set at 56,851 bales.
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