Weekly Market Wrap
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With Adrian Field, Melbourne
Trading Manager
May 20, 2005
Market jumps as Aussie dollar falls
YES, the wool market appears to becoming more and more predictable,
and so there was no real surprise to the market reaction following
a weakening of the currency early this week.
The Australian dollar fell 1 cent against the Greenback on
Monday night/Tuesday morning, which generated a jump of almost
20 cents per kilogram at wool sales over the coarse of Tuesday
and Wednesday.
The dollar then strengthened slightly on the Wednesday night/Thursday
morning, which caused the market to ease about 4c/kg.
A squeeze on availability of certain wool types combined with
a two-day sale next week also contributed to a sudden rise
in the market.
Overall, the eastern market indicator climbed 13c/kg for the
week to close at 740c/kg.
From a total offering of a little more than 58,000 bales,
only 8.2 per cent was passed in - the lowest level for several
months.
All wool types recorded considerable gains this week, especially
23 micron Merino fleece wool, which jumped almost 25c/kg.
Most Merino fleece types gained 10-20c/kg, apart from 18-19
micron wools, which increased 5-10c/kg.
The most sought-after wools were 22-26 micron types.
Better styled, longer Merino skirtings of 19 micron and finer
fetched an extra 20-30c/kg. Remaining types increased by about
5c/kg. The gap between premium and poorer styled skirtings
has widened considerable in the past two weeks.
Most crossbred types gained 15-20c/kg, particularly 27.5 micron
and finer wools. Those in the 30-32 micron range were less
demanded and increased by 5-10c/kg.
Cardings also gained about 10c/kg. Keen demand was displayed
from several different companies for a wide range of types.
Next week's sales will be held in Fremantle, Melbourne and
Sydney, with a little more than 55,000 bales on offer. Sales
will be held over two days.
Very little change in the market is anticipated provided the
dollar remains steady. We have just experienced the impact
a sudden change in currency can have on the market.
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Trading
Manager Adrian Field
takes a look back - for a better wool
future!
Read more... |
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