Weekly Market Wrap
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With Adrian Field, Melbourne
Trading Manager
October 15, 2004
Market maintains levels
THE eastern market indicator remained at 741 cents per kilogram
at the close of sales this week.
Most wools remained unchanged with the exception of 21-22
micron types, which gained up to 10c/kg.
Finer crossbred and carding types were about 5c/kg cheaper.
The market recovered on Wednesday and Thursday after an initial
fall on the Tuesday. Most of the fleece offering on Tuesday
was from New Zealand, with 20 per cent of the offering withdrawn
prior to sale and a further 40pc passed-in.
The currency level was similar throughout the week. It ranged
from 72.7 (US cents) to 72.2, before returning to 72.9.
In the news
THERE was some disturbing news for the wool industry this
week. The PTA (People for Ethical Treatment of Animals) has
been campaigning strongly to get major fashion stores throughout
America to boycott the import and use of Australian wool until
mulesing and live sheep exporting is banned.
One fashion house, Abercrombie and Fitch, has made the decision
to stop using Australian wool and Matt Rice, who represents
PTA, is trying to convince many other companies to do the
same.
The Australian wool industry certainly doesn't need this.
America is a growing market for use of Australian Merino products
and much of the demand is coming from the young sector of
the population. PTA is also doing its best to target wool
consumers.
It looks like Matt Rice has not done all his homework and
discovered the effects of not mulesing Merino sheep. Mulesing
may be painful, but it is short-term and performed when sheep
are young. If sheep are not mulesed, flystrike risk becomes
higher and, as most of us know, this is a very long and painful
experience that will eventually kill the sheep if not discovered
and treated early.
Matt Rice may also not have looked beyond PTA and his personal
interests to recognise that thousands of people throughout
the world rely on the industry for a living (farmers, shed
hands, shearers, brokers/agents, buyers/exporters/processors),
plus the spin-offs from these sectors.
We will no doubt find out more on this next week and will
update the news.
Sales will be held in Newcastle, Melbourne and Fremantle
next week, with a national offering of 55,000 bales scheduled.
Little market change is anticipated.
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