Falklands : Falkland Wool Growers Report for Week Ending 29 July 2005
Submitted by Falkland Islands News Network (Juanita Brock) 02.08.2005 (Article Archived on 16.08.2005)
Robert Hall tells us how the wool market did last week.
Falkland Wool Growers Ltd
Thornhill, Dumfriesshire DG3 4JD
Tel: 01848 200 497 Fax: 01848 200 489
Registered in Scotland No: 176228
VAT Reg No: 699 5128 75
WOOL REPORT: for the week ending Friday 29th July 2005
The Australian market remained in recess last week, with the Australian Eastern Market Indicator (EMI) last quoted at 727 A cents. Sydney and Fremantle resume auctions on 2 and 3rd August.
There were also no auctions in Britain and South Africa this week.
In New Zealand, the Merino Indicator was not quoted. The Mid-micron Indicator was quoted down 15 cents at 566 NZ cents. The Fine Crossbred Indicator (33-35µ) was quoted down four cents at 380 NZ cents, the Coarse Crossbred Indicator (35.1+µ) was up two cents to 354 cents, whilst the Lamb Indicator drifted two cents to 364 NZ cents.
There has been considerable movement in currency markets during the Australian recess. The Australian dollar was trading strongly against the pound at A$2.30/Ł whilst the New Zealand dollar was trading at 2.56 NZ cents/Ł towards the end of the week.
A week ago on Thursday 21st July, the Chinese relented to pressure from Washington by re-valuing the yaun, and dropping the peg to the US dollar. In a long anticipated move, the Central Bank announced that the yaun’s value will now be linked to a basket of currencies. The immediate impact was a 2.1% appreciation against the dollar. ‘Coming two months before China’s president, Hu Jintao, is scheduled to visit Washington, the adjustment appears to be aimed at heading off rising US discontent at the bilateral trade deficit, which reached a record $162bn (Ł92bn) last year.’
Many European manufacturers are either on or approaching their holidays and shut-down maintenance periods. Trade enquiries are generally reduced and buyers are awaiting a resumption of full auctions from across Australia, to obtain a guide from the market as to the latest impact of currency exchanges and quiet trading conditions. Buyers are often avoiding purchases except for immediate processing requirements – we have had several such enquiries this week.
With Best Wishes