Wool roller-coaster continues

27 Apr, 2005 08:45 PM
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DESPITE the market finishing on a high after the Easter recess, wool prices have slipped back down again in the last two weeks.

The Western Market Indicator (WMI) closed at 704c last week, 3c lower than the week before (15th April), when there was a dip of 8c in the market which closed at 707c.

There was a significantly smaller offering last week, with 16,717 bales in the west and 53,513 bales nationally.

The market last week saw good competition in the medium to stronger wools, with an average selection in the fine range.

On the opening day of sales there was little change, with a slight shift in the 21 micron range, which moved up 5c as the 23 micron range fell a few cents.

The second day of sales saw an increase in buyer attention, especially in the 22-23 micron range, which closed 5c higher.

Elders wool marketing manager Ken Walker said there was very little change in the market last week.

Mr Walker earlier predicted that after the 8c drop in the WMI sales would firm up as shearing came to a close.

"There was not a lot of change last week, the better styled types were keenly sought after" he said.

"The previous week there was a large supply of autumn wools, and the dollar was higher, subsequently the prices were lower.

"As shearing winds up around the state we will see smaller offerings and a stronger market."

Mr Walker said that China was still a major buyer, although there was some local action last week.

"China was still buying strong, however there was also good competition from Australian mills," Mr Walker said.

WA saw around 17pc of the total offering passed in, however according to Mr Walker a high number of bales were sold after the sale.

Landmark state wool manager Noel Hulm also said the recent 8c market dip was in large part due to the Australian dollar.

"The price drop during the week of the April 15 market was mainly to do with the rising Australian dollar, and that, coupled with a large offering, puts pressure on the market," Mr Hulm said.

"These two factors are generally what determine the prices.

"We are likely to see smaller offerings from here on which will see a more stable market."

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