Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

August 1, 2003

Market opens weaker

The eastern market indicator fell 18 cents per kilogram to close at 883c/kg this week.

Prices steadied on Wednesday and Thursday after the large initial fall on Tuesday. This was probably due to a combination of the lower Australian dollar, improvements in Futures prices and a significant passed-in rate (about 20 per cent).

Broader microns received the biggest discounts, whilst the finer end was less affected - something we haven't seen for quite a while.

A weaker market at the opening sale of the season is fairly common and this year is no exception.

Something that did stand out was the lack of wool on offer compared to previous years. This just confirms what most in the industry recognise - that there has been a massive reduction in wool production.

Many brokers are talking up to one-third less in wool receivals compared to the same time last year.

The next three weeks will see similar trends, whereby small offerings will be catalogued. Two-day sales have been rostered for the next four weeks.

On a positive note, there has been significant rainfall in some areas. The rains have helped to boost sheep and lamb prices even further, but the demand focus is on meat production, not wool.

The annual Sheep Show held at Bendigo was a big success, and apparently a more permanent fixture with better facilities has been confirmed starting from next year.
The annual Sheepvention held in Hamilton this weekend is also tipped to be a huge success.

Wool prices are not expected to change significantly next week as demand remains weak. The market is not expected to dip sharply however, as wool volume and type ranges on offer are limited.

PAST ISSUES

July 4 , 2003
June 27, 2003
June 20, 2003
June 13, 2003
June 6, 2003
May 30, 2003
May 23, 2003
May 16, 2003
May 9, 2003
May 2, 2003

View Archive