WOOL REPORT: for the week ending Friday 5th December 2003
Auctions
The Australian Eastern Market Indicator gained four cents on Tuesday, gained another four cents on Wednesday and added two more cents on Thursday. The EMI thus closed the week up 1.285 percent or 10 cents at 788 A cents. “The market gained each day with nearly all business being for prompt shipment. Practically the whole pipeline is operating hand-to-mouth, with most players, and particularly the Chinese, believed to be short of wool. Greasy business was described by one major Australian exporter as ‘not too bad’ but wool-top prices are a different issue.” WRWMR. Next week is the last week of Australian auctions before the three week Christmas recess.
In New Zealand the Fine Indicator was quoted up nine on a fortnight ago to 1,033 NZ cents. The Medium Indicator was quoted down a cent on two weeks ago. The Strong Indicator closed up two cents to 386 NZ cents on last week. The Lamb Indicator ended the week at 363 NZ cents. There was an 84 percent clearance.
The Cape Wools Overall Merino Indicator gained 2.1 percent moving from 2,778 SA cents to 2,835 SA cents, despite the rand surging to its best levels in over 45 months against major currencies.
Currencies & Stock Markets
This week the Australian dollar was trading at around A$2.33/£. The New Zealand dollar was trading at around NZ$2.67/£.
Australian Wool Supplies Forecast to Decline whilst Wool Ratios Improve
“Australian shorn-wool production is forecast to decline by 14% to 430 million kg greasy during the 2003/04 season, according to the Australian Wool Innovation production forecasting committee. The estimate is 10 million kg greasy lower than the September forecast of 440 million kg and compares with a revised estimate for the 2002/03 season of 499 million greasy.
The fall in wool values in recent months and the rise in cotton and man-made fibre prices have significantly improved the price competitiveness of apparel wool according to the Woolmark Company. Relative to a basket of man-made fibres wool fell from 4.8 to 3.6 year on year. WRWMR
FWG Agency
Speciality scouring supply interest received this week.
My December Visit Itinerary currently is as follows: 15th: Arrive MPA; 16th Stanley Meetings; 17th Fly to Port Edgar and stay at South Harbour; 18th to Fox Bay, staying at Coast Ridge; 19th to Hill Cove via Sheffield, staying at The Peaks; 20th Fly to Stanley; North Camp 21st staying at Mount Kent; 22nd staying at Hope Cottage; 23rd to be advised; 24th – 29th Stanley; 30th Depart MPA. My very grateful thanks to those people kindly having me to stay. Please make arrangements with me/my hosts to meet me if you are able to.
With Thanks and Regards
Robert
