Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

April 20th, 2007

Market recovers after early falls

THE eastern market indicator recovered well throughout the week and finished at 934 cents per kilogram, representing a fall of just 3c/kg.

Again, this was a very good result considering the Australian dollar has continued to climb - trading at around 83.5 US cents.

Of the 65,659 bales offered, 9.3 per cent was passed in - an encouraging clearance rate.

Interestingly, Melbourne faired worse than Sydney, with larger falls recorded for Merino fleece types.

Southern region

Merino fleece types were generally 10c/kg cheaper overall, with 20-21 micron types falling up to 20c/kg.

Merino skirtings continued to strengthen, gaining 10-20c/kg, while crossbred fleece wools weakened, with the broader end most affected. Cardings followed their recent trend, fetching an extra 10c/kg.

Sales will be held in all three centres next week, but only over two days due to the Anzac Day holiday on Wednesday. About 56,000 bales will be on offer.

The market is expected to follow a similar path due to the lack of supply. The simple fact is that wool volume is drying up and it's come down to the basic definition of economics - the rule of supply and demand.

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