Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

June 15th, 2007

Market continues to ease

THE eastern market indicator shed another 13 cents per kilogram this week to close at 985c/kg.

The increase in wool volume offered this week was certainly going to test the market.

Sharp falls were recorded on the first day, with prices finally stabilising mid-way through yesterday's sale.

Of the 48,293 bales offered, 12.9 per cent was passed in.

Prices in eastern Australia dipped by up to 30c/kg, while they decreased by up to 60c/kg in the west.

Nearly all wool types fell sharply. Broad Merino wool, fine crossbred types and cardings were the only types to remain firm.

Southern region

Merino fleece fell by 10-40c/kg in all microns apart from 25 micron, which remained unchanged.

Merino skirtings eased 10-20c/kg, mainly in the finer end.

Crossbred fleece wools were about 15c/kg cheaper, with 30-micron and broader types most affected. Cardings were firm.

Only 26,850 bales have been rostered for sale next week in two centres, with Melbourne holding a one-day sale.

Nearly 30,000 bales have been rostered for the following Melbourne sale. This is a classic example of questionable management regarding the allocation of wool to sale.

Again, it will be interesting to view the market next week. Although there is little wool on offer, overseas clients will be aware of the larger volume to be offered the following week.

Little change is anticipated overall.

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