Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

June 17, 2005

Market dips

THE eastern market indicator closed at 705 cents per kilogram yesterday, a fall of 8c/kg for the week.

This is the lowest the indicator has been since November 2001, and it is also below the 10-year average of 727c/kg.

The types of wools being hit hardest are the finer microns, particularly in the 17-19 micron range.

Although recent market activity is poor, there are positive signs for other wool categories.

Medium to broad Merino types, crossbred wools and cardings have largely escaped the recent downturn in prices.

Again, 19 micron and finer Merino fleece fell this week by 10-30c/kg, with 17-18 micron categories most affected. Wools of 21-25 microns were unchanged.

Most Merino skirtings decreased 10c/kg, with poorer style, shorter types hit hardest. Crossbred wools generally remained very solid, while most cardings dipped about 5c/kg.

Meanwhile, there has been much publicity regarding the opposition to the move by AWH (Elders, Landmark and Arcadian) to sell their wool in a separate facility in Melbourne.

Growers will have also noticed in rural newspapers that a fair amount of money and time is being spent on changing the perception on mulesing.

Some high profile models and other well-known fashion industry identities are joining forces to help the cause.

Next week's sales will be held over two days in Melbourne and Sydney, with total wool on offer rostered at 30,000 bales.

The market should start to settle next week as the wool volume rostered for sale reduces in the coming months.

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