Weekly Market Report
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With Mark Dyson, Managing Director
April 15, 2011
Market eases mainly due to poorer wools
CONTINUED poorer quality wool offerings due to the seasonal conditions, combined with pressures on finance at the recent high prices, caused the market to ease this week.
The Eastern Market Indicator drifted by 23 cents per kilogram to finish at 1352c/kg clean.
With the Australian dollar rising from 104.5 to 105.2 US cents this week, it put the market down 15c/kg in US terms to 1422c/kg.
More than 40,000 bales were put to auction, with 11 per cent of the catalogue passed-in.
Various fleece wools contained discoloration and cottings due to the recent humidity, while high vegetable matter contents also continued to be a factor.
Finer fleece wools of around 18.5 microns shed 32c/kg, however prices improved towards the end of sales, with 19.5 micron types gaining more than 20c/kg.
Medium and broader wools came under pressure this week, with 24 micron types dipping by 38c/kg, while skirtings also lost ground mainly due to the poorer quality, decreasing by 40-60c/kg.
Crossbred types eased by up to 30c/kg this week too and oddments followed a similar trend. Crutchings fell by up to 10c/kg.
Competition in the auction rooms remained the same, with China dominating and Europe, India and Taiwan contributing good support.
Next week’s national offering at the last sales before the Easter recess is expected to pass 50,000 bales.
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