Global Uncertainty Dampens Wool Market

The Wool Exchange's Eastern Market Indicator fell for the fifth consecutive week, closing at 871 Australian cents/kilogram clean, down 2 cents/kilogram on last week. In U.S. dollars, the market was down 56 cents at 786 U.S. dollars/kilogram, with the Australian dollar falling from 90. U.S. cents last Thursday to 85.5 U.S. cents and then 83.8 U.S. cents this week. This week's supply of 45,159 bales offered across three selling centers brought a clearance of 87.4 percent.

Experts said the ongoing financial situation in Greece and, to a lesser extent, the rest of Europe, is having the biggest impact on the market, creating a crisis of confidence and softer demand.

A small selection of fine wools attracted strong demand, while coarser types were weighed down by increasing numbers and found limited support. Skirting and crossbred types fared well but oddments showed weaknesses again, although not as much as in previous weeks. Competition came from China, India, Korea, Europe and Taiwan.

The forecast for next week's sale in Australia is 41,065 bales nationally.

Reprinted in part from The Wool Record Weekly