Weekly Market Wrap

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With Brian Vagg, Melbourne

February 29, 2008

Rising dollar deflates market

THE eastern market indicator closed 11 cents per kilogram lower this week, although it was a 12c/kg increase in US dollar terms.

The Australian dollar broke through 94 US cents this week, trading at 23-year high levels.

The wool market opened on Tuesday with the last Newcastle sale of the season. A good selection of spinners types were on offer, with prices achieved in-line and slightly higher than the previous Newcastle sale.

In the south there were just over 19,500 bales on offer, which comprised some poorer types containing higher vegetable matter as well as some low yielding lots with high mid breaks and low newtons per kilotex.

Merino fleece of 20-23 microns fell around 13c/kg and crossbred fleece was generally 10c/kg lower.

Merino skirtings and stains all remained firm, with selected types recording good gains. Cardings closed the week fully firm.

Some of the better lots with good specifications are in good demand, and current quotes are becoming distorted due to the selection available. Current prices have most microns still trading in the 80 to 90 per cent decile range.

The national pass-in rate was 14.2 per cent. Next week is the last of three-day selling for some time, with close to 55,000 bales on offer nationally.

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