Weekly Market Wrap

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With Brian Vagg, Melbourne

January 11, 2008

A new year, a new season high

WE could not have had a better start to 2008, with the eastern market indicator (EMI) setting a new season high of 1028 cents per kilogram at the close of the first week of sales for the year on Thursday. This was a 23c/kg rise compared to the last sales in December.

On Wednesday the EMI jumped 12c/kg to close at 1017c/kg, and on Thursday it climbed a further 11c/kg to finish at 1028c/kg clean.

All Merino fleece types enjoyed substantial rises on both selling days, with the better mid-micron types attracting the most support. The 21-22 micron selection gained 12-18c/kg on both selling days.

Significant premiums are still being paid for well classed, good types with high newtons per kilotex, low mid-break and good length. Most of the Merino types are trading in or above the 90 per cent deciles range.

Crossbred fleece also received good competition, resulting in small increases on both days.

The better skirtings that contained low vegetable matter and good length made significant gains of 15-150c/kg on both days. Selected lots fetched much higher premiums.

Cardings were well supported too, with both locks and crutchings rising 25-35c/kg. Stained lines recorded excellent increases.

Nearly 69,000 bales will be offered next week, an increase of almost 24,500 on this week. Despite the increased quantities and some Christmas orders filled, the market is expected to remain fairly firm.

The national passed-in rate this week was very low at 5.8pc.

Southern region

The market opened on Wednesday in Melbourne, where all microns increased in value.

There was very good support for 18.5 and 21-22 micron fleece, which resulted in these types gaining 12-14c/kg.

The trend continued on Thursday, with mid-micron types continuing to receive the best support and increasing 10-13c/kg.

The 18.5-micron fleece closed some 16c/kg firmer compared to the last sale in December. The 19-21 micron range increased 12-20c/kg, while 22-micron wool jumped 25c/kg for the week.

Crossbred fleece made slight increases on both days. The best skirting had rises of up to 35c/kg, and some better selected lots were extreme. Cardings on both days received strong support and closed the week some 35c/kg firmer.

Woolmark takes centre stage in Frankfurt
The natural, sustainable and biodegradable properties of Australian wool will feature on the Woolmark stand at the world's largest textile trade show, Heimtextil in Frankfurt, Germany, this week.

At the same time the display will tell the story of the journey from the sheep's back to the retail floor. This educational aspect will include information brochures and has been added to the stand in response to feedback from visitors and clients at last year's event.

The benefits of sleeping with wool will be highlighted in the range of innovative products displayed.

Wool bedding products enjoy not only the natural features of comfort and quality, the moisture retention and wicking properties of wool help you to stay at a comfortable temperature and dry, with less sweating and overheating.

Staff from Australia, Netherlands, Germany, China and Japan will be on-hand to answer questions and offer guidance on the best choice of wool fibre for product performance to meet consumer expectations.

This year several international licensees will be joining Woolmark on the stand with their own exhibition spaces. (Source: Rural Press)

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