Falklands : Falkland Wool Growers Report for Week Ending 31/04/06
Submitted by Falkland Islands News Network (Juanita Brock) 02.04.2006 (Article Archived on 16.04.2006)
Robert Hall tells us what the wool market did last week.
Falkland Wool Growers Ltd
Craiglearan, Moniaive
Thornhill, Dumfriesshire DG3 4JD
Tel: 01848 200 497 Fax: 01848 200 489
Email: roberthall@falklandwoolgrowers.co.uk
Registered in Scotland No: 176228
VAT Reg No: 699 5128 75
WOOL REPORT: for the week ending Friday 31st March 2006
Auctions
In Australia, currency factors continued to influence the market this week. The Australian Eastern Market Indicator (EMI) dropped a cent on Tuesday, drifted four cents on Wednesday and lost another cent on Thursday. The EMI thus closed the week down six cents at 738 cents. Finest types lost some ground with wool of 18 to 24 microns most affected. The market was again influenced by inferior selections being offered. There was an 82% clearance of the 65,406 bale national offering.
In New Zealand, the Merino Indicator that was quoted up 31 from 16/2/06 to 1,069 NZ cents, whilst the Mid-micron Indicator that was up 16 cents on the fortnight to 662 NZ cents. The Fine Crossbred Indicator (33-35µ) gained 17 cents on the fortnight to 420 NZ cents and the Coarse Crossbred Indicator (35.1+µ) moved up 16 cents on the fortnight to 363 cents. The Lamb Indicator also lifted 13 cents to close at 403 NZ cents. The rises were attributed to the NZ dollar having weakened by over six percent since the last auction, to hit a 22-month low.
The British auction of Scottish wool saw a reasonably firm market and a 70% clearance. The Indicator slipped a penny to 75 p/kg greasy.
Currencies
On the last auction day of the week, Thursday, the Australian dollar was trading weaker at A$2.44/£ whilst the New Zealand dollar was weaker at 2.87 NZ cents/£. These currency movements again exacerbated the weaker wool market when converting to sterling. The Australian dollar closed the week at A$2.433/£ whilst the New Zealand dollar closed the week at NZ$ 2.838/£. FT
“The Australian dollar also recovered 0.6 per cent to $0.7148 against the greenback as domestic data-flow improved and a commodity index designed to mirror Australia’s exports pushed 40 per cents above its level a year ago. Some argued that the Aussie had been ‘unfairly punished’ by contagion from the weak New Zealand dollar, while Goldman Sachs also recommended its clients take long Aussie positions.” FT
Background
Although the wool pipeline is relatively empty, Manufacturers reported a quieter week. Spinners and others are awaiting indications that currency and wool markets have settled and are firm.
FWG Agency
Over half of the wool from M/V Skaftafell, 2006 Voyage 1, has arrived at Bower Green warehouse, Bradford.
A range of enquiry was received with a limited weight of business booked.
With Regards
Robert
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