Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

March 3, 2006

Large offering halts market

THE eastern market indicator eased 5 cents per kilogram this week to close at 741c/kg.

This was the first time in the past seven weeks where the market actually fell. Such a large offering was always going to test prices, so the result was not necessarily a surprise.

Passed-in rates were substantially different to previous weeks. A total 16.3 per cent of wool offered was passed-in, whereas previously it has been 7-10pc.

Most types eased this week apart from broad Merino (25-26 micron) and fine Merino (18.5 micron and finer) wools.

Better styled wools still received very good support.

Southern region

Merino fleece wools measuring 18.5 microns and finer remained very firm. Wools of 25-26 microns gained up to 15c/kg, while all remaining types dipped by about 5c/kg.

Merino skirtings strengthened again, with premium prices still being paid for premium wools.

Crossbred fleece remained very solid and probably strengthened slightly.

Cardings also strengthened yet again, with most types increasing by about 10c/kg.

An offering of about 63,000 bales is rostered for next week, with sales to be held in all three centres.

Considering the volume of wool offered this week, the market held up well, and next week should see some strong results again as we head into smaller offerings for future sales.

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