Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

March 23rd, 2007

Big market correction

THE eastern market indicator fell the equivalent of last week's rise to close at 943 cents per kilogram this week - a fall of 19c/kg.

Most of the easing occurred on the first day of sales, with some Merino types decreasing by up to 50c/kg.

The market recovered slightly toward the end of the first day and remained stable over the next two days.

The sudden rise in the Australian dollar against the Greenback was the main reason for the fall.

Of the 63,558 bales offered, 14.6 per cent was passed in, which was not surprising.

Southern region

Merino fleece types fell by about 30c/kg overall, with 22-micron and finer wools most affected - some types shed up to 50c/kg.

Merino skirtings showed little change, however the poorer style and higher fault wools eased a little.

Crossbred fleece wools dipped 10-15c/kg, while cardings again strengthened by about 10c/kg.

Next week's sales will again be held in all three centres, Melbourne, Sydney and Fremantle, with a total of 67,463 bales set to be put under the hammer.

The movement in the dollar obviously played a major role in the sudden price decline this week. Provided it stays at current levels, there is likely to be little change.

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