June 19, 2009
Wool prices have started to climb as supply hits a new low. The Australian wool market finished 0.6 percent higher on average after small sales in Sydney and Melbourne this week.
The Australian Wool Exchange's Eastern Market Indicator is up 18 cents a kilogram on a week ago, but the supply of wool for sale has slumped to its lowest level in a year.
The market held onto the gains made last week after three weeks of falling prices on the back of good competition. The smaller offerings of less than 40,000 bales in each of the three weeks leading up to the mid-year break will hopefully ensure that prices hold onto their current levels or move up in this period of economic uncertainty.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 35,070 bales are currently rostered for sale. Present estimates for the upcoming two sales are 37,650 and 34,000 bales, respectively, a decrease of 18.6 percent over the three-sale period when compared with last year.
Reprinted in part from ABC Rural Australia