Weekly Market Wrap

For the latest edition, please Refresh frequently visited pages.

With Adrian Field, Melbourne
Trading Manager

June 1st, 2007

Is the 'mini boom' over?

THE eastern market indicator gained 8 cents per kilogram overall this week to close at 1016c/kg. If price falls had not occurred on the last day, the indicator may have surpassed 1020c/kg.

Has the "mini boom'' ended, or is it just a moment of price correction?

Although prices eased on the last day, the amount of wool on offer is still quite low. Therefore, the next few weeks should be very interesting.

The biggest movers this week were again the superfine Merino fleece types, with 17.5-micron and finer rising 30-70c/kg.

Passed-in rates climbed slightly - of the 50,161 bales offered, 6.4 per cent was passed in.

Southern region

Merino fleece of 17.5-micron and finer was in high demand, while 19.5-23.5 micron types were cheaper. Wool of 23 microns was most affected, falling by up to 20c/kg.

Merino skirtings were unchanged overall. Similar to the fleece wools, better types weakened on the last day.

Crossbred fleece wools were 20c/kg higher for the finer end, but showed little change in the medium to broad category. Cardings were unchanged overall.

Only 32,567 bales have been rostered for sale next week, with Fremantle taking a one week recess.

It will be a very interesting week next week. There is little wool on offer, but the market has showed signs of making a correction and the dollar is also getting stronger.

RECENT ISSUES