WOOL REPORT: for the week ending Friday 6th February 2004
Auctions
The Australian market’s Eastern Market Indicator was little changed overall this week but with wool finer than 21 microns tending softer. The EMI added a cent on Tuesday, gained three cents on Wednesday and lost the three cents on Thursday. The EMI thus closed the week a cent better at 790 A cents. “In relatively short supply broader wool fared better than finer types although stylish selections were generally firm. China and European topmakers were active.” WRWMR.
In New Zealand the Fine Indicator was not quoted. The Medium Indicator added eight cents to 544 NZ cents. The Strong Indicator was six better at 374 NZ cents, whilst the Lamb Indicator also gained six cents to close at 374 NZ cents. Nine percent was passed-in.
The Cape Wools Overall Merino Indicator moved 2.0 percent lower from 3,332 SA cents to 3,264 SA cents not least because of the stronger currency.
The British sale saw ‘strong demand on most types resulting in a clearance of 81% on a 2.15 million kilo offering’. The UK indicator was unchanged at 78 p/kg.
Currencies
Influenced by UK interest rates, the Australian dollar traded weaker towards the end of the week at 2.40 A cents/£ whilst the New Zealand dollar was trading at 2.68 NZ cents/£.
UK Interest Rates
The Bank of England raised UK base interest rates for the second time in three months to four percent (4.0%). In contrast the European Central Bank this week kept its primary rate unchanged at two percent and last week the US Federal Reserve held its primary rate at one percent. Futures market rates indicated UK rates were expected to end the year at 4.5 to 4.75 percent and rise to 5 percent by the end of 2005. FT.
FWG Agency
All additional supplies of Falkland wool would be much welcomed by our speciality customers.
Many thanks for all the bale specifications received of late.
With Regards
Robert.
