Weekly Market Wrap
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With Mark Dyson, Managing Director
December 14, 2007
New season high for Christmas
WE could not have had a better close to wool sales prior
to the Christmas break, with the Eastern Market Indicator
(EMI) finishing at a new season high of 1005 cents per kilogram
clean – up 7c/kg.
Better Merino types in the 19-22 micron range enjoyed good
price rises. The finer end had mixed results, but was not
assisted by a less than stylish selection. Once again, types
with high newtons per kilotex, low mid-breaks and good length
received strong support.
The 19-22 micron fleece closed 15-19c/kg firmer in both the
northern and southern markets. Crossbred fleece closed slightly
firmer on the finer types and there was a good lift in the
32-micron range, especially in the southern market.
The best skirtings with low vegetable matter and good length
made significant gains of around 15-25c/kg. Most cardings
received good support and recorded a small rise across the
board when compared with last week.
As discussed last week, it appears we may be very close to
the levels processors will accept before they start to look
for other products they may blend. This holds true, as processors
are not able to sell wool tops at levels to validate current
However, the signs are especially good for the first couple
of months of 2008. Production is at an all-time low and demand
is at levels we have not experienced for some time. This becomes
even more apparent considering the Australian dollar has been
trading at historically high levels.
Most Merino types are trading in or above the 80 per cent
The national offering was 62,065 bales, with China and Europe
dominating the buying. The national passed-in rate was 10.6
Close to 55,000 bales has been rostered nationally for the
first sale after the three-week Christmas recess.
The market opened on Wednesday in Melbourne, where all microns
recorded significant gains. There was a good selection of
The price increase continued until Thursday, when prices
retreated. This may have been
due to the less stylish types on offer as well as buyers having
already purchased significant quantities for current orders
and stock requirements.
The 17.5-18.5 micron fleece finished some 25c/kg firmer when
compared to last Thursday’s close. The 19-20 micron
range increased 15-20c/kg, while the 21-24 micron category
closed around 5c/kg firmer.
Crossbred fleece received good support, especially on Wednesday
and Thursday, and
The best skirtings recorded rises of up to 35c/kg. Cardings
also received strong support on a large selection, finishing
around 8c/kg dearer.
2010 mulesing deadline now a ‘target’
The phasing out of mulesing no longer has a 2010 deadline,
it has a 2010 target.
The slight, but significant, change of wording was seen in
Australian Wool Innovation’s media release issued after
the first meeting of its new board last week.
It read: “As required by the decision of the whole
Australian wool industry in November 2004, AWI will continue
to research alternatives to surgical mulesing to support the
industry’s target of phasing out surgical mulesing by
December 30, 2010.’’
Until now the word “deadline’’ has been
constantly used. Page 30 of AWI’s new 2007-12 strategic
plan states “the highest priority will continue to be
commercialisation of the clip and intradermal alternatives
to surgical mulesing by the 2010 deadline’’. (Source:
I would like to take this opportunity to thank you and your
families for your ongoing support of Quality Wool and its
expanding agricultural products. I wish you all a very safe
and happy Christmas and a prosperous New Year.