Falklands : Falkland Wool Growers Report (09/28/06)
Submitted by Falkland Islands News Network (Juanita Brock) 01.10.2006 (Article Archived on 15.10.2006)
Robert Hall tells us how the wool market did last week
WOOL REPORT: for the week ending Friday 29th September 2006
Auctions
In Australia, the Eastern Market Indicator (EMI) fell from last week’s close of 752, down a cent on Tuesday, then lower by eight cents on Wednesday and further easing by four cents on Thursday. The EMI thus closed the week down 13 cents (1.7%) at 739 cents. This was despite the local dollar softening against the euro and US dollar. “In US terms and in euros the market was 2.5% down. WRWMR reports that the disappointing tumble appears to have been due to the season’s second largest offering of more than 67,000 bales and Chinese determination to push the market lower against a background of rapidly deteriorating seasonal conditions.”
The New Zealand Merino Indicator was not quoted. The Mid Micron Indicator was quoted down 15 cents on the week to 615 NZ cents, the Fine Crossbred Indicator down six cents to 371 NZ cents and the Strong Crossbred Indicator down two to 333 NZ cents. The Lambs Indicator wasn’t quoted. “Western Europe dominated the mid-micron wool.”
In South Africa the Cape Wools Overall Merino Indicator started at 3,072 SA cents per kg clean and closed up 1 percent at 3,104 SA cents. 98% was sold. The rand was softer against the US dollar by 3 percent, which accounted for the Indicator increase but still made wool cheaper in US dollars.
Currencies
Towards the end of the week, the Australian dollar was trading a cent weaker at A$2.50/£ whilst the New Zealand dollar was three cents weaker at NZ$2.83 /£.
Australian Background
“In its latest Quarterly Report, the Australian Bureau of Agricultural and Resource Economics (ABARE) has revised downwards its earlier forecast for numbers of sheep shorn and wool production. This is because of increases in the slaughter or sale of sheep and lambs, and worsening seasonal drought) conditions. Wool production is forecast to be 6.2% down on the June estimate. ABARE expects price competition from alternative fibres to remain strong in 2006/07, placing continued downward pressure on wool prices, and predicts that the Wool Exchange’s Eastern Market Indicator will be 710 Australian cents per kg this season.” WRWMR
FWG Agency
Thank you very much indeed, to all those Farm Principals who have marketed their wool through FWG during the last decade and who continue to support Falkland Wool Growers’ dedicated Falkland wool marketing operation. In FWG, farmers have an extremely strong, experienced and professional, marketing identity for their wool, that has a track record of obtaining top quality results. Our work continues and customers are already making enquiries about new season wool.
With Best Wishes
Robert
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