Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

January 20, 2006

Price rises continue

THE eastern market indicator continued to rise significantly this week, jumping 24 cents per kilogram to close at 673c/kg.

Again, most rises were recorded in the finer Merino fleece types, particularly 18.5-micron and finer wools. Other types also received good demand.

Of the 60,129 bales offered, 10 per cent was passed in. The sudden market lift was again good for clearance rates.

Southern Region

Similar to last week, 17-19 micron Merino fleece wool enjoyed the biggest rises, gaining 20-60c/kg, while 21-25 micron types increased by about 10c/kg.

Merino skirtings also gained another 10c/kg overall, with the finer end jumping by more than 40c/kg.

Crossbred wools strengthened slightly. Most types recorded rises of 5-10c/kg. Most carding wools increased 5-10c/kg.

The rises this week were most likely due to buyers/exporters wanting to fill January commitments.

The same trend is not expected next week. A smaller offering may keep prices steady, but further similar increases are not anticipated.

The year ahead for wool does look better however, as stocks overseas continue to decline and fresh demand grows, especially in Europe where there are some good early signs.

Next week's sales will be held in Sydney and Melbourne over two days due to the Australia Day holiday on Thursday. A total 37,396 bales will be offered.

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