Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

December 12, 2003

Market eases at final sales

THE eastern indicator lost last week's gains to finish at 775 cents per kilogram this week, equating to a 13c/kg fall.

The most noticeable fall was in the crossbred section.

Most Merino types fell considerably and the only types to hold up fairly well were cardings, 21 micron fleece wool and 32 micron crossbred wool.

It appeared that many buyers had filled most of their older commitments last week, and therefore prices were indicative of new business levels.

Outlook

We now have a three week recess from sales before commencing again on January 5.

It is difficult to predict market levels at sales in the new year, however the sentiment is a little negative due to average feedback from overseas clients and agents, combined with the high Australian dollar.

General News

It was refreshing to see a woolgrower who was very pleased with his sale results last week.

He produces 21 to 24 micron wools and received prices ranging from 500 to 530c/kg (greasy).

"At $1000 per bale, it was still not a bad price when combined with prime lambs and cereals,'' the grower said.

"Five years ago, wool prices were covering only twice the shearing cost.''

Figures illustrating price results from sheep sales in the Riverina area over the past four months suggest that the area has received its best results ever. Some areas averaged $78 per head, which was $52 up on last year. The record was for 2-3 year old ewes, which sold for $163.50 in September - and they were bare shorn.

The market is now cooling-off for fine wool sheep as producers discover the poorer return, compared to broader wool dual purpose sheep.

Finally, it looks like health and safety costs/issues are being blamed for the closure of stock saleyards in Mansfield and Heywood in Victoria. This has obviously upset many producers in those areas as they now look at further travel time, which equates to increased costs. Unfortunately, these types of decisions are becoming more and more frequent without any consultation to/with the producer. Not only does this have an affect on costs, it also has a negative affect on the local communities.

We wish readers of the weekly market report an enjoyable Christmas and New Year period, and, although it's an old cliche, let's hope next year brings better times for the wool industry.

PAST ISSUES
December 05 , 2003	September 26, 2003	July 4 , 2003
November 28, 2003	September 19, 2003	June 27, 2003
November 21, 2003	September 12, 2003	June 20, 2003
November 14, 2003	September 5, 2003	June 13, 2003
November 7, 2003	August 29, 2003	June 6, 2003
October 31, 2003	August 22, 2003	May 30, 2003
October 24, 2003	August 15, 2003	May 23, 2003
October 17, 2003	August 8, 2003	May 16, 2003
October 10, 2003	August 1 , 2003	May 9, 2003
October 3, 2003		May 2, 2003