Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

September 26, 2003

Strong dollar weakens market further

THE eastern market indicator fell below the 900 cents per kilogram mark this week to close at 880c/kg - a fall of 22c from last week.

The biggest falls occurred on Tuesday in Sydney and Wednesday in Melbourne.

The market appeared to find stability yesterday, finishing on a stronger note.

Hopefully we will continue to see the market recover and stabilise following the slump in prices the past fortnight

Surprisingly, only 22 per cent of the wool offered for the week was passed in, although there was a considerable amount withdrawn from sale.

The market dip has been quite the opposite to conditions of the same time last year, when it jumped almost 300c/kg in just a couple of weeks.

In news for the week, BWK, which is 42pc owned by Elders, is looking at shutting down their Geelong Wool Combing Plant.

The ongoing disputes with the clothing and footwear union over the past 12 months, combined with the significant downturn in wool production, have forced BWK to consider such a decision.

Other news that makes weekly headlines is the continuing record-breaking prices received for sheep, in particular meat sheep.

The Weekly Times had a number of articles illustrating such demand. Ram prices for meat sheep climbed to all-time records in certain categories at the Royal Melbourne Show.

Sales will be held in Sydney, Fremantle and Melbourne next week, with an expected offering of 58,400 bales.

Little market change is expected following the stabilising signs yesterday.

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