Weekly Market Wrap

Adrian Field
Mark Dyson
Managing Director
 

With Adrian Field, Melbourne
Assistant Trading Manager

January 9, 2004

Positive start to new year

THE first wool sales for the new calendar year started on a positive note despite a massive jump in the Australian dollar.

This goes against the previous trend, and many people would be scratching their heads wondering if currency has any affect on wool prices.

The kick in wool prices had nothing to do with the dollar. The main reason for the sudden lift in demand was the fact that several companies have deadlines for shipping commitments that must be filled within the next fortnight. They just needed to buy the wool.

Combine this with some fresh business into Europe and there is the recipe for a sudden lift in competition - and stronger market activity.

The eastern indicator closed at 791 cents per kilogram, 16c/kg higher than the final sale prior to Christmas.

Most price rises were in Merino fleece categories, particularly for 20 micron and finer.
Most crossbred wool types actually fell slightly.

China is still very quiet as it heads into its New Year period. Various industry participants believe China will become more active in February/March.

The market is likely to slide within the next fortnight for a few weeks before a recovery early next month, however with such small volumes of wool anticipated for the coming weeks we may see the market maintaining current levels.

Like most members of the industry, we are looking forward to a better year and perhaps this week's positive start is a sign of things to come.

PAST ISSUES

   
December 12 , 2003 September 26, 2003 July 4 , 2003
December 05 , 2003 September 19, 2003 June 27, 2003
November 28, 2003 September 12, 2003 June 20, 2003
November 21, 2003 September 5, 2003 June 13, 2003
November 14, 2003 August 29, 2003 June 6, 2003
November 7, 2003 August 22, 2003 May 30, 2003
October 31, 2003 August 15, 2003 May 23, 2003
October 24, 2003 August 8, 2003 May 16, 2003
October 17, 2003 August 1 , 2003 May 9, 2003
October 10, 2003   May 2, 2003
October 3, 2003    
     





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