Weekly Market Wrap

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With Brian Vagg, Melbourne

February 8, 2008

Market finds level, rebounds

THE market resumed on Tuesday in Melbourne only, with the eastern market indicator (EMI) falling 19 cents per kilogram to close the day at 949c/kg. This was not assisted by the Australian dollar trading at over 91 cents and another interest rate rise due.

Southern Merino fleece types fell 15-20c/kg clean, except the 21-micron types, which drifted by close to 30c/kg.

In comparison, on Wednesday the market closed at a similar level to early December 2007, and on Thursday it rebounded a little, with most of the good, sound wools gaining 15-20c/kg clean. Skirtings and cardings also remained in sellers' favour.

Crossbred fleece and cardings finished the week similar to where they commenced.

The WA market resumed on Wednesday after an absence of a week, with a correction recorded to bring it in-line with eastern markets.

Sydney recorded similar falls to Melbourne on Tuesday.

The direction of the Australian dollar will most certainly have an impact on the market in coming weeks.

Next week is the first and only Launceston sale of the season, with about 11,500 bales to be offered on Tuesday and Wednesday before sales resume in Melbourne on Thursday, where about 10,000 bales will be auctioned.

The concentration of fine wools at the Tasmanian sales will be interesting. Good, sound wools are likely to be well sought-after, while tender, inferior wools will not be well supported by the trade.

Nationally there will be only about 50,000 bales offered, with 58,000 rostered for the following week.

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