WOOL REPORT: for the week ending Friday 9th January 2004
Auctions
As a generalisation the Australian market gained 2% this week despite the Australian dollar strengthening by 4% against the United States dollar during the three-week recess. On Tuesday the Eastern Market Indicator added two cents and similarly on Wednesday. On Thursday the EMI rose 12 cents to close the week up 16 cents at 791 A cents. There was an 89% clearance of the 47,523 bales offered. The 2% rise however conceals the fact that in Sydney and Melbourne the merino types gained, whilst crossbred types of 25 microns and coarser all dropped in value. The Wool Exchange noted a widening price gap between best styles, which are in short supply, and good/average selections.
In New Zealand the Fine Indicator was not quoted. The Medium Indicator dropped 31 cents to 516 NZ cents and the Strong Indicator lost eight cents to 376 NZ cents. The Lamb Indicator was unchanged at 379 NZ cents.
The Cape Wools Overall Merino Indicator begins on 14th January at 2,813 SA cents and the first British auction of Scottish wool also resumes next week.
Currencies
The Australian dollar traded towards the end of the week at 2.36 A cents/£ whilst the New Zealand dollar was around 2.70 NZ cents/£. Currency movements including US dollar changes continue to have significant effects on wool values.
FWG Agency
We received good interest in Falklands wool this week, especially for 24.7µ max fleece.
Very many thanks to all those people who kindly had me to stay during my time in Camp before Christmas. Thanks also for those who passed me along the track and lent me vehicles. It was great to see so many farming families, wool sheds and generally sound, clean wool. My apologies to those farmers who I was unable to see on this occasion.
With Best Wishes for a Happy and Prosperous 2004.
Robert and Diane.
