Wool Market Pauses on a High

July 6, 2007 - As the wool market in primary wool-producing countries pauses for its mid-year recess, market indicators have finished about 200 Australian cents a kilogram higher than last financial year.

It has been a dramatic climb for the wool market over the past six months, with prices hitting the 1,000 Australian cent mark in May.

This week, the benchmark eastern market indicator has ended down two Australian cents at 929 Australian cents a kilogram.

The Wool Agency's Andrew Johnston says the market started to climb at the very first sale in January.

"We'd be pretty close to where we were at that first kick," he said. "And what's happened is you've seen a few darling ranges there, but it tries to keep breaking through the 1,000 mark, it's below that, but in the past six months, we've been on a pretty even keel.

"The six months before that were a lot lower and in fact these prices are better than they have been for a number of years."

In addition, The AU$ continues to push higher, breaking through the US$0.85 barrier in the past week, finishing Thursday trading at US$0.857 - its highest closing level since Feb. 15, 1989.
Reprinted in part from ABC Rural Australia and Meat and Livestock Australia

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