Falklands : Falkland Wool Growers Report for Week Ending 11 January 2008
Submitted by Falkland Islands News Network (Juanita Brock) 14.01.2008 (Article Archived on 28.01.2008)
Robert Hall updates us on last week's wool market.
WOOL REPORT: for the week ending Friday 11th January 2008
Auctions
The Australian Eastern Market Indicator (EMI) rose to a fresh seasonal peak this week.
Opening at 1,005 A cents on Wednesday it added 12 cents and firmed another
11 cents on Thursday. The EMI thus gained 23 cents (2.2%) on the week to close at
1,028 A cents. There was a relatively small offering at 44,562 bales, which saw a 94%
clearance and was considered to be a factor in the price rise. There was also keen
buying from Europe and China.
In New Zealand 27,475 bales were offered: the Merino Indicator was not quoted, the
Mid-micron Indicator was quoted down five cents at 611 NZ cents. The Fine Crossbred
Indicator up two cents at 338 NZ cents. The Strong Indicator was up three cents at 335 NZ
cents. The Lamb indicator was quoted at 320 NZ cents. 89.7% of bales were sold.
WRWMR
In Britain, there was a strong sale with sustained demand, resulting in a high clearance of the
1.9 M kg greasy offered. The British Fleece Indicator rose three pence to 73 p/kg greasy.
Currencies
By the end of the week, the Australian dollar was trading strongly against sterling at
A$2.21/£. The New Zealand dollar was also trading strongly at NZ$2.53/£.
Background
“The deepening gloom surrounding the global economy prompted risk-averse investors
to dump Asian and European equities this week, and drove gold to a record high.
Japanese stocks fell to their lowest level since November 2005, having fallen 7.8
per cent since trade resumed in 2008, while European stocks fell to a 13-month
low after a 5 per cent fall in the first two weeks of the year.
Fears of a consumer slow-down were heightened after retailers reported
slowing sales growth over Christmas.
Although grocery chains such as Wal-Mart, Sainsbury and Carreflour fared well,
slowing sales growth at Marks and Spencer in the UK and Gap and Ann Taylor Stores
in the US showed consumers were easing up on their discretionary spending.
Same-store sales data in the US revealed revenue from consumable items such as food
was strong, while apparel, jewellery and home furnishings were weak.” FT
FWG Agency
Good speciality interest was received during the week.
Many thanks to Farm Principals, for continuing to send bale specifications.
Please send all outstanding bales specifications for wool now already shipped.
With Regards
Robert
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