WOOL REPORT: for the week ending Friday 28th November 2003
Auctions
The Australian Eastern Market Indicator eased a cent on Tuesday, drifted another two cents on Wednesday and remained unchanged on Thursday. The EMI thus closed the week down three cents at 778 A cents. "The Australian market drifted nowhere in particular this week, losing 3 Australian cents per kg clean and maintaining the recent pattern of firming on the last selling day. At 778 Australian cents per kg clean, the Wool Exchange’s Eastern Market Indicator continues to flounder around levels of two years ago. The Australian dollar is still touching six-year highs against the US dollar. Newcastle selections were of mixed quality on the opening day in Sydney but improved as the week went on. Biella interests were active. Elsewhere China was in the market again. Generally enquiries and positions on all fronts relate to pre-recess shipping times. Little forward business is being written." WRWMR Australian pass-ins ran at 12 percent of the 54,500 bales offered.
In New Zealand the one percent stronger currency versus the US dollar caused prices to ease again. The Strong Indicator lost 10 cents to close at 386 NZ cents. 10% of the 13,683 bales were passed-in.
The Cape Wools Overall Merino Indicator lost 3.3 percent dropping from 2,874 SA cents to 2,778 SA cents. "The rand has gained 6% in two weeks, hitting the entire industry, particularly primary processors as the value of wool in stock declines continuously." WRWMR
The British sale saw over 75 percent cleared with the indicator easing 2 pence to 80 /kg greasy.
Currencies & Stock Markets
This week the Australian dollar was trading at around A$2.36/£. The New Zealand dollar was again trading at around NZ$2.66/£.
"The euro stormed to a record high against the US dollar on Friday, rattling European stock markets amid fears that its surge could cut short the fragile export led recovery in the eurozone. The rise took the euro to $1.2015, its highest level since its launch in January 1999, before it slipped to $1.988 in sparse trading. Traders said its gains came as mounting concern over the US current account deficit, fears of trade disputes (EU, China) and geopolitical jitters weighed on the dollar. The latest stumble, which took the dollar to five-year lows against sterling and a near seven-year low against a trade-weighted basket of currencies, came despite optimistic US economic data." FT
FWG Agency
Enquiries continue, including for the Far East.
Many thanks for all bale specifications received lately.
With Regards
Robert
