WA leads wool market rise

23 Mar, 2001 01:33 PM
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WA'S best wool sale in years.

That's how the wool industry is greeting last week's result, with the indicator up nearly five per cent in three days of selling.

Good demand across all wool micron categories, a weak Australian dollar in relation to buyer currencies, and a rising market were just some factors behind WA's golden week for wool.

The Western Region indicator for last week's three-day sale recorded a 32-cent jump (after a week's break) with opening prices for most microns rising in the range of 20-30 cents a kilogram clean.

The Western region indicator, up 4.9pc, was almost double some of the other regions, attributed to sales finishing strongly in WA where there also is a relatively limited supply.

Strongest support in last week's three-day WA sale was for 20-micron wool, which rose 40c/kg on Tuesday, with 23 micron and broader micron-wool gaining 10-15c/kg, the momentum continuing through Wednesday and Thursday.

Elders WA wool manager Chris Puckridge said the low Australian dollar had given the market further power and that last week's sale was the best in years.

He said the Chinese market was a driving factor behind the good prices.

Wesfarmers Dalgety wool manager Ron Myers said the increases in prices was a classic case of supply and demand, with a lot of demand from topmakers added to the perception there was not a lot of wool left in the stockpile.

He said it was especially good to see improved prices for the medium and broad range wool that was the WA's "bread and butter".

Primaries of WA principal Des Sheedy said that, during the previous two weeks, there had been a correction in the market, which was expected, however he said the trend was still "positive".

"The overriding factor is supply and demand," Mr Sheedy said.

"There has been more interest from China and more support from Europe."

Modiano Australia wool buyer Greg Horne described last week's sale was "red hot" with the falling value of the Australian dollar to European and US currencies meaning medium quality wools were not a lot dearer. "We can sell wool at these market rates," he said.

Another European woolbuyer representative said China was buying more wool for its own use.

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