Weekly Market Wrap
For the latest edition, please Refresh
frequently visited pages.
With Adrian Field, Melbourne
Trading Manager
September 17, 2004
Year of consistency for woolgrowers
PROVIDED the market remains steady the next two months,
the wool industry will have experienced one whole year of
an indicator that has remained between 750 and 800 cents per
kilogram.
This would be one of the longest stretches in the industry's
history where prices have remained so consistent for so long.
The market eased slightly this week to close at 777c/kg
- dropping just 3c/kg.
Most price falls were confined to crossbred fleece wools,
in particular the broader end, which decreased up to 10c/kg
Although finer fleece wools fell slightly, strongest demand
still appears to be in the 19 micron and finer range. Better
styled pieces and bellies in this micron category gained up
to 20c/kg.
Passed-in rates were again very low and totalled only 11.9
per cent.
New Zealand wool that was offered yielded a different result,
with 32.6pc passed in.
Estimated wool volumes continue to grow, with Australian
Wool Testing Authority's August figures revealing an increase
in bale numbers of 9.5pc and an increase in weight by 10.1pc
compared with the same time last year.
With continued reports of good rains and good lambings throughout
most parts of South Australia and New South Wales, the trend
should hopefully continue.
Other AWTA data suggests wool finer than 19 microns is on
the decrease, yet other measurements such as length, strength,
yield and vegetable matter are up.
In other industry news this week, Australian Wool Services
announced it needed to make some big changes to the structure
and running of the Woolmark Company due to ongoing funding
pressures experienced in recent years.
For further information on the proposed changes, growers
can contact Australian Wool Services Ltd on (03) 9341 9308.
Next week's sales will be held in Melbourne Fremantle and
Newcastle, and total volume on offer will slip below 60,000
bales.
The market is expected to continue its trend and remain
stable. The Australian dollar has been sitting around the
70 US cent mark recently, which helps instil consistency.
|
