Falklands : Falkland Wool Growers Report for Week Ending 03 November 2006
Submitted by Falkland Islands News Network (Juanita Brock) 06.11.2006 (Article Archived on 20.11.2006)
Robert Hall updates us on the latest wool market news.
WOOL REPORT: for the week ending Friday 3rd November 2006
Auctions
In Australia, the Eastern Market Indicator (EMI) leapt from last week’s close of 782, up 15 cents on Tuesday, a further jump of 40 cents on Wednesday, followed by an additional rise of seven cents on Thursday. The EMI thus closed the week up 62 cents (+7.93%) to a new seasonal high of 844 cents. Such gains that have not been witnessed for four years, came as global buyers responded in unison to supply concerns and good demand. The EMI is now at a level last seen in June 2004.
The New Zealand Merino Indicator was quoted up 59 cents on the fortnight at 1,184NZ cents and the Mid Micron Indicator was quoted up 71 cents on the fortnight to 675 NZ cents. On the week, the Fine Crossbred Indicator was up one cent to 367 NZ cents and the Strong Crossbred Indicator up two cents 346 NZ cents. The Lambs Indicator wasn’t quoted.
In South Africa, the Cape Wools Overall Merino Indicator started at 3,312 SA cents per kg clean and closed up 6.9 percent at 3,539 SA cents. There was a 98% clearance of the offering of 8,915 bales.
Currencies
Towards the end of the week, the Australian dollar was trading at A$2.46/£ whilst the New Zealand dollar was at NZ$2.83 /£.
El Nino
It has been recognised that El Nino has developed again in the Pacific Ocean and that hot dry conditions will persist for some months. Analysts predict that potential supplies of Australian wool are being dramatically reduced by the impact of the current drought.
FWG Agency
The importance of maintaining the highest quality control standards in the preparation of clips, cannot be over-stated. The export of stain free fleece lines is of the greatest importance.
Significant enquiries have been received for New Season wool. Given the global market rises, our price ideas are substantially higher for finer Falklands wool than only a few weeks ago: particularly for wool in the range 19 to 23 microns.
With Best Wishes
Robert
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