Weekly Market Wrap

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With Mark Dyson, Managing Director

May 2, 2008

Market slides on rising Aussie dollar, lower US interest rates

THE market is not being assisted by the strong Australian dollar on top of very low world economic confidence.

This week the US again reduced interest rates, which has increased pressure on the exchange rate.

It is hard to see the wool market changing direction in the next few months. All buyers are reporting difficulties in trading, which has also not been assisted by the selection.

However, they are unable to move the better types, which traditionally remain in reasonable demand.

There were more than 35,000 bales of wool traded on the futures market to Thursday, which should surely be seen as a positive.

Wool sales were held in all regions on Wednesday and Thursday this week, with only crossbred types escaping the downward trend we have been experiencing.

The Eastern Market Indicator (EMI) fell 16 cents to close at 904c per kilogram. The national pass-in rate was 21.6 per cent.

In the southern region the 17.5-micron category closed 10c/kg cheaper at 1484c/kg, the 18-micron fell 27c/kg to close at 1419c/kg, 18.5-micron fell 20c/kg to close at 1303c/kg and 19-micron fell marginally to close at 1166c/kg, which was a 3c/kg fall.

The broader types, where selection varied dramatically, experienced bigger falls, with the 19.5-micron category falling 35c/kg to close at 1031c/kg, 20-micron fell 43c/kg to close at 947c/kg, 21-micron fell 28c/kg to close at 894c/kg, 22-micron fell 8c/kg to close at 882c/kg and 23-micron drifted 7c/kg to close at 857c/kg.

Crossbred wools gained marginally on Wednesday in the south and closed with a reduction of around 5c/kg across the board. Cardings were similar to the fleece, with falls of around 20c/kg.

Next week there is a larger national offering of just on 53,000 bales.

April 24, 2008
April 18, 2008
April 11, 2008
April 4, 2008
March 21, 2008
March 14, 2008
March 7, 2008
February 29, 2008
February 22, 2008
February 15, 2008
February 8, 2008
February 1, 2008
January 25, 2008
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December 14, 2007
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November 30, 2007
November 23, 2007
November 16, 2007
November 9, 2007
November 2, 2007
October 26, 2007
October 19, 2007
October 12, 2007
October 5, 2007

Mark Dyson, Managing Director

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