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 Wool market back 0.8pc for the week 

Wool market back 0.8pc for the week

6/06/2008 10:58:00 AM
The Australian wool market finished 0.8pc lower, or seven cents a kilogram, after sales in Sydney and Melbourne this week.

The Australian Wool Industries Secretariat reports that the AWEX eastern market indicator fell by 7c/kg (clean), to end the week at 845c/kg.

Region by region the changes were:

* the northern indicator fell just 2c/kg (-0.2pc) to finish the week at 887c/kg;

* in the south the indicator fell 11c/kg (-1.3pc) to close at 810c/kg; and

* in the west the indicator price was unchanged at 843c/kg as there was no sale in Fremantle this week.

AWIS reports that the greater fall in the south was mostly due to falls of 30-70c/kg in the 17 to 18-micron indicators.

In a season low, just 30,154 bales were on offer, compared with 39,364 bales last week when all three regions sold, of which 11pc were passed in.

Elders offered 810 bales wool from non-mulesed sheep (NM) and 842 bales of wool from properties which have ceased mulesing (CM) in a special sale as part of the Global Wool Auction on Monday.

AWEX reported good support for the better styled wools and lesser support for the less stylish and broader wools.

The pass-in rates of 31pc and 21.5pc respectively were partly due to the higher expectations of some growers for these wools.

AWIS says a number of passed-in lots were sold after the sale at, or near, reserves taking the clearance rate to 78pc for wool from non-mulesed sheep and 67pc for wool from properties that had ceased mulesing.

This compared to a passed in rate of 76pc for the 'traditionally offered' wools.

AWIS also says that although the EMI was down, it was a more settled market this week after the last two weeks and "closed on a more encouraging note".

The majority of the wool was again bought by buyers for China, with strong support from buyers for Europe and India.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 33,010 bales are currently rostered for sale.

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