Falklands : Falkland Wool Growers Report for Week Ending 04/11/05
Submitted by Falkland Islands News Network (Juanita Brock) 06.11.2005 (Article Archived on 20.11.2005)

Robert Hall tells us how the wool market did last week.

WOOL REPORT: for the week ending Friday 4^th November 2005

Auctions

Starting the week at 666 A cents, the Australian Eastern Market Indicator (EMI) lost six cents on  Wednesday and eight cents on Thursday.  The EMI thus closed the week down 14 cents at 652A cents, the lowest level since 24 March 2000.  Pass-ins reached 27.4% in Freemantle on Thursday, with the national average rising to 17% for the week.  European buyers were in evidence.

In New Zealand, the Merino Indicator was quoted down seven on the fortnight at 882 cents; and Mid-micron Indicator was quoted at 531 cents, which was down 19 cents on 20/10/05.  The Fine Crossbred Indicator (33-35µ) was quoted up three at 341 NZ cents and the Coarse Crossbred Indicator (35.1+µ) was down three to 325 cents.  The Lamb Indicator was quoted at 352. There was a 76% clearance of the 12,320 bale offering.

In South Africa the Cape Wools Overall Merino Indicator was quoted down 0.4 percent on the week from 2,410 to 2,400 SA cents per kg clean.  European buyers were again very active.

Currencies

Towards the end of the week, the Australian dollar was trading weaker at A$2.39/£ whilst the New Zealand dollar was trading weaker at 2.55 NZ cents/£.

Background

Merino wools of all descriptions were significantly cheaper in Australia and New Zealand, even after allowing for the weaker local dollar currencies.  Seasonally high volumes both in New Zealand and Australia are pushing the Merino market down on lack-lustre demand.

Several leading European manufacturers report business is busy but at current levels, with deliveries going out and new business being placed.

FWG Agency

Early bale specifications have been received with thanks.

During my Falklands visit between 23^rd November and 8^th December, I plan to be on West Falkland during the last week of November and on East Falkland at the start of December.  I will endeavour to visit as many farms as possible however if anyone would especially like a meeting, please advise soonest.

With Thanks and Regards

Robert

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