Weekly Market Wrap
For the latest edition, please Refresh
frequently visited pages.
With Adrian Field, Melbourne
Trading Manager
May 13, 2005
Common recipe causes market spike
A COMBINATION of a smaller offering and weakening Australian
dollar caused the eastern market indicator to rise 5 cents
per kilogram this week to close at 727c/kg.
This is almost a predictable outcome for such circumstances
and is the most common scenario for any improvement in the
market.
Of the 53,085 bales offered, 11.7 per cent was passed in.
The biggest price rises were recorded for 18.5 and 21 micron
Merino fleece wools, increasing by 10c/kg. Other Merino fleece
types gained about 5c/kg.
Merino skirtings actually fell in price slightly and were
probably the only wools that did for the week.
Crossbred combing wools remained very firm, with 28-30 micron
types strengthening by 5-10c/kg.
Merino and crossbred cardings also remained very solid and
some types edged upwards.
Meanwhile, AWI is still receiving criticism from various grower
bodies and individuals over their handling of grower levies
that have been used to help promote and advertise wool products
throughout the world.
Hopefully AWI can soon be restructured so that it can become
more effective. Nothing seems to have worked over the past
10-15 years.
Judging from the IWTO conference in Hobart three weeks ago,
there appears to be a lack of recognition and understanding
of wool and its properties among young consumers.
The New Zealand Wool company, with its 'Ice Breaker' range
of clothing, is a great example of what can be done - high
quality, durable and good looking garments.
It also seems that the retailers are making plenty of money,
unlike the other links of the wool industry chain, which continue
to struggle.
We need to work on a more viable industry for everyone, from
the producer to the processor.
Next week's sales will be held in all three centres again
with a total offering of slightly more than 60,000 bales.
Little market change is anticipated, so long as the currency
remains at current levels.
|
