Weekly Market Wrap

For the latest edition, please Refresh frequently visited pages.

With Adrian Field, Melbourne
Trading Manager

March 18, 2005

Market makes some ground

The eastern market indicator increased 7 cents per kilogram this week to close at 723c/kg.

Only 11.1 per cent of the wool offered was passed in Australia-wide.
The passed-in rate for the New Zealand catalogue was the lowest to date at 11pc – the rate has previously averaged 35pc.

The market recorded price rises in all categories except some crossbred types.
The biggest rises were in the 18.5-19.5 micron wools.

The Australian dollar remained fairly steady at around the 79 US cent mark.

Merino fleece wools lifted 5-10c/kg in all categories. Merino skirtings also rose 5-10c/kg. Crossbred types were fully firm, apart from 28-29 micron wools, which fell slightly.
Cardings recovered from last week’s fall and gained 10c/kg.

In the news
An international advertising company has been contracted by AWI and Meat and Livestock Australia (MLA) to prepare a series of advertisements that are designed to promote the virtues of wool as a fashion fibre and neutralise the misinformation distributed by PETA. The advertisements are likely to commence in May.

The wool forecasting committee has revised wool volume upwards to 487 million kilograms.

China’s exports to the US have increased dramatically after removal of quotas on January 1. The price of the Chinese goods came down, furthering the increase of pressure on other textile exporting countries.

ACWE has convened a cross industry meeting from growers to processors, plus the service industries, on Monday, March 21. The meeting has been called because of the impact of two alleged cases of substitution on the reputation of Australian wool exports.

Next week’s sales will be held in Sydney and Melbourne, and are the last sales prior to the Easter recess. A total of 50,900 bales will be on offer. The Fremantle selling centre is having a two-week Easter recess.

The market should remain steady and possibly rise further due to the small offering and leading into the recess.