S.Atlantic : Falkland Wool Growers Report for 02 May
Submitted by SARTMA.com (Juanita Brock) 05.05.2003 (Article Archived on 19.05.2003)
Robert Hall tells us what happened in the wool market last week.
Wool Market Report: Friday 2nd May 2003
As was being predicted during the week to 25th April, lower prices materialised at auction last week. The market fell dramatically on Tuesday with the EMI dropping 114 A cents or 10.56 percent. (This was the largest one-day fall since the collapse of the floor price scheme 12 years ago. Pass -in rates where extra-ordinarily high with 59.3% in Sydney; 62.2% in Melbourne and 81.3% in Fremantle.) On Wednesday the EMI drifted another five cents whilst on Thursday the EMI put on two cents. The EMI this lost 117 cents or 10.84 percent on the week, closing at 962 A cents.
"Several factors conspired to affect the market. These included severe acute respiratory syndrome (SARS), which has resulted in many people in China not attending work, and the Australian dollar’s 3.5% rise against the United States dollar since the recess and euro strength against the US dollar. Post Iraq-war turbulence, a joyless outlook in the major western economies, reduced wool supply fears and drought affected selections all led to Tuesday’s tumble as the market awaited direction." WRWMR
In New Zealand the Fine and Medium Indicators were not quoted. The Strong Indicator slipped 6 NZ cents to 431 cents whilst the Lamb Indicator dropped 16 cents to 416 NZ cents.
In Britain, the Indicator lost a penny to 79 p/kg greasy with 76 percent cleared of 2.15 million kilo offered.
The Australian dollar was trading stronger at A$2.55/£ for much of the week whilst the New Zealand dollar was around NZ$2.84/£.
Health procedures, changes to shipping frequency and problems with ships look set to delay the arrival of remaining wool. The Atlantic Crusader has docked at Marchwood: the first bales of wool are not expected at Bower Green for some days.
Prior to 25th April, contracts had been booked for all Farm Principals’ tested wool from voyages 1, 2, 3 and 4 lying at Bower Green.
Many thanks for all the bale specifications received lately.