Weekly Market Wrap
With Adrian Field, Melbourne
Assistant Trading Manager
March 26, 2004
Market recovers after first day slump
THE eastern market indicator fell 11 cents per kilogram
this week to close at 781c/kg.
Most of the price fall occurred early in the week and was
reflective of the rise in the Australian dollar. The dollar
had increased nearly 2 per cent from late the previous week
to early this week, and the indicator dropped about 2pc.
The large offering this week combined with the news that next
week's catalogue would grow by 25pc were also factors that
had a negative effect on the market.
Fortunately, a substantial amount of new business was completed
on Wednesday, and this helped stabilise market levels on the
Thursday.
Most of the falls occurred in the 21-24 micron range, where
some types fell by up to 25c/kg.
Next week's offering will climb to 91,000 bales Australia-wide,
which will be the largest volume so far this season.
This will likely have a negative effect on the market unless
further business is confirmed between now and next Tuesday.
There have been three separate occasions over the past 12
months where such an increase has occurred, and there has
been a downward movement in the market on all three occasions.
The AWIS group has written a letter to the National Council
of Wool Selling Brokers advising of the consequences such
sudden large offerings have. Hopefully there is a positive
outcome.
The market has been very consistent in price over the past
20 weeks. Apart from a brief 2-week period, the indicator
has been fluctuating between 750 and 800c/kg.
Some easing in the market is expected early next week before
a recovery and some stability later in the week.
| PAST ISSUES |
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 March
19 , 2004 |
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| March
12 , 2004 |
September
26, 2003 |
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| March
5 , 2004 |
September
19, 2003 |
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| February
27, 2004 |
September
12, 2003 |
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| February
20, 2004 |
September
5, 2003 |
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| February
13, 2004 |
August
29, 2003 |
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| February
6, 2004 |
August
22, 2003 |
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| January
30 , 2004 |
August
15, 2003 |
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| January
23, 2004 |
August
8, 2003 |
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| January
16, 2004 |
August
1 , 2003 |
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| January
9, 2004 |
July
4 , 2003 |
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| December
12 , 2003 |
June
27, 2003 |
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| December
05 , 2003 |
June
20, 2003 |
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| November
28, 2003 |
June
13, 2003 |
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| November
21, 2003 |
June
6, 2003 |
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| November
14, 2003 |
May
30, 2003 |
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| November
7, 2003 |
May
23, 2003 |
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| October
31, 2003 |
May
16, 2003 |
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| October
24, 2003 |
May
9, 2003 |
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| October
17, 2003 |
May
2, 2003 |
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| October
10, 2003 |
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| October
3, 2003 |
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