Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

January 23, 2004

Market eases

THE market eased 16 cents per kilogram this week to close at 811c/kg.

Demand was again very inconsistent, which was evident in the market activity throughout the week.

The market was largely unchanged on the first day, but most prices fell on the second day of sales.

Although fine wool prices eased, the gap between microns was still maintained. This is likely to be the case for some time as the overall clip has broadened.

There are still large quantities of fine wool being held in wool stores across the nation, however with prices improving it should not be long before some of that wool comes onto the market.

General

THE demand for crossbred sheep does not appear to be slowing down, with a pen of 3-year-old first cross ewes reaching $162 per head at Deniliquin last week.

A record wool price was achieved last week when a bale of 12.2 micron wool sold for 180,000c/kg – understood to be the fourth highest on record.

Some good news came from Tasmania, where it was announced that the local government would list exotic sheep under a mandatory code of practice. This code will be aimed at breeds such as the Dorper, Damara and Awassi.

Roberts Wool, Tasmania’s biggest wool broker, has declared it will not be handling or marketing any of those breeds.

There must be strict control on how these breeds are farmed/managed and their wool harvested. All parties involved must continue to make a conscious effort to manage flocks appropriately to avoid contamination. Australia prides itself on being one of the best and cleanest wool growing countries in the world, and we all want this reputation to continue.

Market outlook

PRICES should remain similar to those from the sales this week.

Demand from China is limited as we head into their New Year period, and the Aussie dollar strengthened late last week.

However, as we witnessed two weeks ago, the dollar had no effect on the market.

PAST ISSUES
January 16, 2004	October 3, 2003
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November 28, 2003	September 5, 2003	June 13, 2003
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October 10, 2003