Australia wool community did not end the year on a good note. For the last week of trading before the 3-week Christmas recess, prices again fell, in line with the dramatic decline observed in 2003. .
.
The Eastern Market Indicator (EMI) was down 13 cents at 775 Australian cents per kilo clean, losing 6 US cents at 576 cents after the Australian dollar further rose against the greenback. .
.
Following the rebound in demand observed in the previous week, market sentiment actually did not change according to the Schneider group.The decline in prices was more the result of a lack in quality wool with buyers waiting for a possible improvement in offer after the recess. .
.
Prices this year fell between 31% and 36% in Australian dollar terms, depending on micron categories. They only declined between 10% and 18% in US$ terms as a consequence of the fall in the US dollar and the rise in the Australian currency. .
.
In Euro terms, prices decreased by 25% to 31%. .
.
Wool experts are now predicting a recovery in apparel retail sales in Japan and the United States, resulting in higher demand for wool at the upper end of the pipeline. .
.
The lack of supply could also boost prices. Due to a rise in production of fine and super-fine wool, prices were depressed in the past year. .
.
With growers now shifting to broader qualities, offer of 19 micron wools and lower would stumble. Sales will resume on January 5th.Prices also declined in South Africa last Wednesday where Cape Wool indicator fell 0.8% to close at 28.13 rand per kilo clean. “This is down 19% on the opening level,” Cape Wools reported. .
.
Fine wools posted the biggest drops, the wool body added. .
.
In US$ terms, the indicator fell 1.6% or 6 cents at 442 cents. Sales will resume on January 14th.Prices also fell in New Zealand where the strong indicator declined one local cent while the medium and the fine indicators were down 11 cents and 8 cents respectively. The lamb indicator rose 13 cents, however. .
.
Final sales of the year will take place on December 18th
Date:12/18/2003
Source: