Weekly Market Wrap

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With Mark Dyson, Managing Director

May 27, 2005

Market improvements evaporate

THE eastern market indicator fell 13 cents per kilogram this week to close at 727c/kg - exactly correcting last week's market rise.

The strengthening Australian dollar was obviously a factor, but the absence of some of our biggest buyers also had a major impact. The lack of competition was one of the major reasons for the sudden slump.

From a total offering of slightly more than 53,000 bales, 15 per cent was passed in. This was to be expected considering the price fall.

All wool types declined in price this week, especially 18-20 micron wools, which dipped 20c/kg. Some wools finer than 18 micron fell by up to 40c/kg.

Most Merino fleece types lost 5-15c/kg, with wools finer than 19 microns most affected.

Wools of 24 and 25 micron actually gained 5c/kg.

Most Merino skirtings fell 10-20c/kg, with poorer, shorter styled wools most affected. Crossbred wools only declined 5c/kg. Not all carding wools were affected, but most lost 5-10c/kg.

Next week's sales will be held in Fremantle, Melbourne and Sydney, with a little more than 63,000 bales on offer.

Hopefully some of the larger buying firms will become active again next week to prevent any further market weakening.

Next week's offering is almost 10,000 bales larger, so good competition is necessary to keep the market steady.

May 20 , 2005
May 13 , 2005
April 29 , 2005
April 22 , 2005
April 14 , 2005
April 8 , 2005
Adrian Field
Mark Dyson
Managing Director
Special Report by Adrian Field
Trading Manager Adrian Field takes a look back - for a better wool future!

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