Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

December 16, 2005

No Christmas bonus in final sales

THE last sales for the calendar year this week resulted in a fall in the eastern market indicator by a further 7 cents per kilogram to close at 633c/kg.

Of the 61,759 bales offered, 19.8 per cent was passed in. Once again the market wasn’t prepared for the fall, hence the high passed-in rate.

Crossbred wools again were hit hardest over the week. Crossbred offerings have increased substantially over the past two weeks and there is simply not enough business to absorb the sudden rise in volumes.

Southern Region

Wools finer than 19 microns eased 10-15c/kg, while broader Merino fleece decreased 5-10c/kg.

Merino skirtings were slightly weaker again and very irregular, especially for poorer style wools.

Crossbred types finished 10-30c/kg cheaper, with 26 micron wools most affected.

Carding types received their biggest discounts for some time, falling by about 15c/kg overall.

It appeared most companies struggled to generate new business heading into this week, with the market particularly poor at sales early in the week.

Fortunately, Merino types finished on a very sound note, which suggests there is a level that customers are prepared to buy at, even though it is not the desired price.

We now head into the annual Christmas recess with no sales for three weeks. Sales will resume on January 9, 2006, when all three centres will be operating.

I wish you all a very happy Christmas and New Year and hope you have an enjoyable festive period.

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