Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

June 25, 2004

Market remains strong on small offering

THE EMI now sits at 827 cents per kilogram, which represents a rise of 6c/kg and also brings it to the highest level since January this year.

The small volume on offer was probably the main reason for the strong market - sales were held in Sydney and Melbourne with 34,571 bales offered which made it the smallest offering for the year.

Only 8.3 per cent of wool was passed in.

There was some inconsistency as Sydney recorded a rise of 13c/kg whilst Melbourne actually fell by 1c/kg, however there were some significant price rises in the Merino skirtings and cardings.

Outlook

Next week's sales will be held in all three centres on Tuesday and Wednesday.
Total offering is estimated at around 55,000 bales and the following week is estimated at over 77,000.

Combine this with a strengthening Australian dollar (which rose 1 cent overnight) and you have a real test for true market levels.

I think that the market will be steady with maybe a slight softening. However, I think that some types have risen to where they should be and premium wools should also maintain current levels.

Average styled wools will possibly ease but overall I can't see the market falling a great deal.

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