Weekly Market Wrap

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With Brian Vagg, Melbourne

October 19, 2007

Wool shortage continues price rise

THE eastern market indicator increased significantly for the second week in a row this week, jumping 50 cents per kilogram clean. It closed at a season high of 997c/kg.

Both Tuesday and Wednesday recorded strongest support nationally, with most microns finding a level on Thursday.

It is becoming more apparent that processors are low on wool stocks. The shortage is assisting to push the market in an upward direction.

The finer Merino wools attracted strong support, assisted by a Newcastle fine wool sale.

Not withstanding that, the broader microns were also very strong considering the low level of good supply on offer.

Of the 51,540 bales offered, 3.8 per cent was passed in.

Southern region

All Merino fleece types were stronger, especially 17.5-micron wools, which gained up to an extra 80c/kg clean for the week.

Skirtings were generally 20c/kg higher, while crossbred fleece wool remained solid overall. Some crossbred types were slightly weaker, while others were slightly firmer on any day.

Cardings gained about 20c/kg for the week.

Sales will be held in Sydney, Fremantle and Melbourne next week, with close to 55,000 bales on offer nationally.

The market looks like it will at least maintain these levels, with the shortage of wool becoming increasingly important.

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