Falklands : Falkland Wool Growers Report (08/10/06)
Submitted by Falkland Islands News Network (Juanita Brock) 08.10.2006 (Article Archived on 22.10.2006)
Robert Hall updates us on how the wool market did last week
WOOL REPORT: for the week ending Friday 6th October 2006
Auctions
In Australia, the Eastern Market Indicator (EMI) fell from last week’s close of 739, down a cent on Tuesday, then lower by four cents on Wednesday and followed by a modest lift of three cents on Thursday. The EMI thus closed the week down two cents (-0.27%) at 737 cents. “China, accounting for more than 60% of Australian exports, is dictating lower levels and nobody appears to be able to intervene despite the facts that a raw wool supply crisis is looming, the pipeline in Europe and China needs restocking, wool apparel is popular in northern hemisphere stores and will do well this autumn/winter, and the mood at the big fabric shows in Milan and Paris, when the collections for autumn/winter 2007/08 were unveiled, was upbeat so far as wool and natural fibres were concerned.”
The New Zealand Merino Indicator was quoted down 28 cents on the fortnight at 1,118 NZ cents. The Mid Micron Indicator was quoted down 13 cents on the week to 602 NZ cents, the Fine Crossbred Indicator down 10 cents to 361 NZ cents and yet the Strong Crossbred Indicator up eight cents 341 NZ cents. The Lambs Indicator wasn’t quoted. There was only a 76.5% clearance. “The main support for Merino and mid-micron wool continues to come from Western Europe with very limited support from China.”
In South Africa the Cape Wools Overall Merino Indicator started at 3,104 SA cents per kg clean and closed up 1.3 percent at 3,145 SA cents. “The rand reached a 39-month low against the US dollar, providing some wool-market support at yesterday’s sale.”
In Britain the week’s sale saw the indicator unchanged at 68 p/kg greasy.
Currencies
Towards the end of the week, the Australian dollar was trading two cents weaker at A$2.52/£ whilst the New Zealand dollar was also two cents weaker at NZ$2.85 /£.
Australian clip is forecast to fall 6%
“A lack of late winter and early spring rain across eastern Australia, combined with the prospect of below-average rainfall to the end of December has resulted in a significant downward revision of Australian wool production in 2006/07. The AWI Production Forecasting Committee which met last Thursday, expects shorn-wool production to total 434 million kg greasy – 6% down on the previous season. The new forecast is 22 million kg or 5% lower than the previous forecast in July.” References WRWMR
FWG Agency
Thank you again very much indeed, to all those Farm Principals 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 important speciality customers are already making enquiries about new season wool.
With Best Wishes
Robert
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