Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

January 28, 2005

Market reacts to stronger dollar

THE eastern market indicator dipped 7 cents per kilogram this week to close at 740c/kg.

The market started strongly on Tuesday before easing on Thursday. Passed-in rates jumped to more than 12 per cent as a result of the price fall.

Most types were affected, with much of the price gains for fine wools last week being eroded this week.

All Merino fleece types declined, with 18 and 22-24 micron wools most affected, where some lots fell by up to 15c/kg. Wools in the 21 micron range were least affected, falling by just 3c/kg.

Merino pieces and bellies remained quite strong, crossbred types were virtually unchanged, and cardings also continued to remain solid.

Meanwhile, figures produced from recent sales are suggesting that reoffering wool is becoming less common. A total 87.7 per cent of this week's offering was auctioned for the first time.

Next week's sales will be held in Sydney, Melbourne and Fremantle, with a total offering of 65,021 bales rostered.

Little change is expected, with currency movement again a determining factor.

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