Weekly Market Wrap
With Adrian Field, Melbourne
Assistant Trading Manager
August 8, 2003
Market recovers on short supply
The eastern market indicator almost regained all of last
week's fall to close at 899 cents per kilogram, a rise of
16 cents.
Broad wool was the big price mover this week.
The shortage of supply again played a major role in influencing
market activity.
The shortage in the 22-26 micron range and move towards the
finer microns has been illustrated on the AWEX market summary,
and is particularly evident for Victoria and NSW. The spread
of micron from wool produced in WA seems to be more regular.
China, Australia's major wool importer, is still very quiet.
Last year the country imported up to 40 per cent of the clip
and, although we are only just a couple of weeks into the
new season, local estimates suggest sales into China are currently
around the 15pc mark.
Sheep prices continue to break all-time records. First-cross
ewes with lambs at foot made up to $196 dollars at Wycheproof
this week
At least there is still hope for continuing wool production
with the incentive to breed sheep for meat. It was not that
long ago that meat was the by-product of wool - not the case
now.
Don't expect the market to move significantly next week, as
orders and enquiry is scarce.
If new orders come through we would expect a rise in prices
due to the lack of wool on offer.
Another two-day sale is scheduled for Melbourne next week,
with 51,000 bales on offer nationally.
PAST ISSUES
 August
1 , 2003
July
4 , 2003
June
27, 2003
June
20, 2003
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13, 2003
June
6, 2003
May
30, 2003
May
23, 2003
May
16, 2003
May
9, 2003
May
2, 2003
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