Weekly Market Wrap

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With Adrian Field, Melbourne
Trading Manager

March 2nd, 2007

Market stabilises

AFTER a shaky start to the week, the eastern market indicator recovered on the final day of sales to finish at 909 cents per kilogram, a rise of just 1c/kg on last week's close.

With the Chinese back from their New Year break, increased business activity was evident.

The Australian dollar weakened a little throughout the week, also helping the indicator.

Of the 69,214 bales offered nationally, 13.5 per cent was passed in. The passed-in rate on the New Zealand offering was nearly 40 per cent.

Overall, most types were similar to the previous week.

Southern region

Merino fleece types improved 5c/kg overall, while 18-micron and finer types actually weakened slightly.

Merino skirtings also weakened a little this week, especially for wools finer than 19-micron.

Crossbred fleece wools dipped by 5-10c/kg, while cardings remained unchanged overall - longer types strengthened and shorter types weakened.

Next week's sales will again be held in Melbourne, Sydney and Fremantle, with 49,557 bales rostered for sale.

Tender fleece types strengthened the most this week, which is always a good sign for the market. Prices should remain very solid next week and could increase slightly. A relatively small offering should protect the market from drifting.

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