Weekly Market Wrap

Adrian Field Trading Manager

With Adrian Field, Melbourne
Assistant Trading Manager

June 6, 2003

Small offering holds prices

THERE weren't too many surprises in sales this week, with the market strengthening slightly on a very small offering. The indicator rose 4 cents per kilogram to close at 920c/kg.

With such a small offering and very little movement, this market behaviour suggests that export demand is still pretty slow. A larger offering may have seen prices struggle to maintain their levels. Again, it's a real lack of supply on offer that seems to be dictating market activity.

A very good clearance rate was also recorded, with only 10 per cent of the wool offered being passed in.

Next week's offering is likely to test the market, with 47,000 bales rostered for sale Australia-wide. Sales will be held in all three selling centres across the country.

Export sales are still very slow into China, however there appears to be some more activity from other Asian markets, as well as some interest from Europe.

Unless a significant amount of business is done between now and next Wednesday, which is always possible, little change is anticipated in the market for next week. It may ease slightly provided there's not too much change in currency levels.

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