Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

November 21, 2003

Positive news at last

WE finally had some positive results at sales this week, which saw the market rise 2 cents per kilogram to close at 781c/kg.

Most categories recorded a market lift, except for 18 to 18.5 micron and 23 to 24 micron wools, which fell about 5c/kg.

The main reason for the turnaround was the sudden lift in demand late last week. Several companies confirmed business that needs to be bought and shipped within a two to three week period.

It appears, however, that sale volumes for the last two weeks prior to Christmas are fairly substantial, and this could put pressure on the market.

Meanwhile, Australian Wool Innovation (AWI) and Meat and Livestock Australia (MLA) have announced that a new database for Estimated Breeding Values (EBVs) for rams will be up and running at 250 studs across Australia by April next year.

The EBVs will cover traits such as parasite resistance, wool characteristics and carcase traits. In total it will provide information on 46 different traits.

David Crombie, chairman of MLA, said: “the database will enable all sheep producers to compare sheep from different flocks on genetic merit’’. AWI chairman Ian McLachlan described the creation of the database as “a landmark achievement that secures the genetic future of the Australian sheep industry’’.

This is welcome news. It is this type of technology and objectivity that wool and meat producers need as they head into the future.

Back on the market, stocks in wool stores are continuing to climb as many growers choose to sit on their wool or withdraw it from sale.

The market is expected to remain at current levels next week. Strong demand will be evident for types that need to be shipped within the next fortnight.

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