Falklands : Falkland Wool Growers Report for Week Ending 01/02/08
Submitted by Falkland Islands News Network (Juanita Brock) 04.02.2008 (Article Archived on 18.02.2008)

Robert Hall tells us what happened in the wool market last week

WOOL REPORT: for the week ending Friday 1^st February 2008

Auctions

The Australian Eastern Market Indicator (EMI) opened at 1,045 A cents.  On Wednesday it drifted 21 cents and lost a further 17 cents on Thursday.  The EMI thus lost 38 cents (3.64%) on the week to close at 1,007 A cents. “The correction which, analysts claim, was inevitable after a sustained period of price increases, was partly caused by a stronger Australian dollar versus the US dollar.” There was a smaller offering at 44,533 bales, which saw an 81% clearance.  There was less demand from Europe whilst China was active.

In New Zealand 16,937 bales were offered: the Merino and Mid-Micron Indicators were not quoted.  The Fine Crossbred Indicator was down five cents at 345 NZ cents, whilst the Coarse Crossbred Indicator was also lower by five cents at 337 NZ cents. The Lamb indicator was quoted down three cents at 334 NZ cents.  83.9% of bales were sold.  WRWMR

In South Africa the Cape Wools Overall Merino Indicator was down 0.4% from 6,465 to 6,436 SA cents/kg.  9,258 bales were offered and 96% sold.

Currencies

On currency markets the US dollar fell within a whisker of its lifetime low against the euro. 

By the end of the week, the Australian dollar was trading unchanged against sterling at A$2.23/£.  The New Zealand dollar was trading two cents stronger at NZ$2.54/£.

Background

“Global equity markets saw more wild swings this week as investors reacted to a mixed batch of US economic data, another interest rate cut by the Federal Reserve, corporate take over activity and reports of a rescue package for bond insurers.

In commodities, US crude prices consolidated around the $90 a barrel mark.  Gold touched a record high of $936.50 an ounce on Friday before retreating sharply.” FT

FWG Agency

As shearing enters the last month of the current season, it is vital that all shearing shed personnel maintain the highest quality control standards and wool preparation.

Speciality interest was again received during the week.

With Thanks and Regards

Robert

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