Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

December 17, 2004

Market steadies before Christmas break

THE last week of sales for the calendar year saw the eastern market indicator rise just 2 cents per kilogram this week to close at 743c/kg.

Most wool types jumped in price significantly on the first two days of sales, however the market corrected on the final day.

Although prices were on a slight downward trend on the final day, good enquiry for new business was received on Thursday and Friday.

Passed-in rates increased to 14.6 per cent, which was the highest level for some time.

Most Merino types remained firm, with 24 micron fleece prices surging 15c/kg. The market for crossbred wool was sluggish, with most types easing 5c/kg.

PETA update

SOME good news from the past week was that significant textile users/manufactures such as Benetton, J. Crew and New Look have not said they will cease buying Australian wool. As far as most of these companies are concerned, they do not knowingly purchase any Australian wool from wool growers who practise mulesing or provide animals for live export.

Even Abercrombie and Finch are apparently continuing to offer a diverse range of casual woollen products.

PETA continues to campaign, but its impact appears to be having less effect than initially thought. This can only be good news, and leading companies should be commended for showing their resistance toward PETA.

Meanwhile, New Zealand has boosted Australia’s efforts to make shearing easier, safer and more efficient by contributing $1.5 million to Australian Wool Innovation’s $14.5 million purse.

Back on the market, the past six months have been tougher than the initial forecast, with anticipated demand not living up to expectations.

Our most common dictator during this period has again been the Australian dollar versus the US dollar. Our dollar has been strong at times, while the US dollar has been quite weak, having a negative effect on the wool market.

Hopefully there will be a little more spirit in the wool market next year. Best wishes for Christmas and the New Year.

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