Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

February 25, 2005

Market settles

DESPITE the significant market downturn last week due to the large offering, wool prices settled this week, with the eastern market indicator falling just 3 cents per kilogram to close at 722c/kg.

Most falls were recorded in the southern region, with all micron categories affected except for broader and crossbred types.

Newcastle staged a good selection of stylish wools, and most types finer than 19.5 microns received good support. The balance was slightly cheaper.

A total 12.4 per cent of wool offered was passed-in, with higher passed-in rates recorded at the southern and western centres.

Southern Region

Nearly all Merino fleece wool dipped in price, with 19.5 micron and 18 micron types most affected.

Merino pieces and bellies were up to 20c/kg lower. Crossbreds remained unchanged, with 30 micron and broader wools actually gaining some ground.

Carding wools fell for the second straight week, with most types easing 10c/kg.

In the news

Australian Wool Handlers (Elders/Landmark and Arcadian) is continuing to proceed with its new selling facilities at Brooklyn despite opposition from exporters.

Australia's two main wool bodies are on the verge of becoming one - Australian Wool Services (parent to The Woolmark Company) and Australian Wool Innovation.

If this does become official, let's hope the combined "brainstrust'' can implement some change in promotion and research that will help increase awareness and demand for the woollen fibre.

Maybe they could look at developing markets aimed at the modern day youth, such as surfwear and skatewear. Brands like Billabong, Quicksilver and Ripcurl are showing record-breaking growth and profits through increasing sales and promotional events.

The industry needs to target current trends and flavours, rather than rely on the trends and flavours of the past.

Next week's sales will be held in Melbourne, Sydney and Fremantle, with 70,921 bales expected to be offered. Little price change is anticipated.

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