Hope after late-week rise
While the Western Wool Market had a one-week recess, the 34,693-bale east coast offerings brought a glimmer of hope with rises last week.
Although Sydney prices were down significantly, wool prices in Melbourne lifted 5 cents across most descriptions last Thursday, according to AWEX.
"The late-week rise in the market ended a nine-day losing streak in which the Eastern Market Indicator fell 145 cents, the largest decline since late 2008," AWEX said.
Australian Wool Industries Secretariat's Peter Morgan said the Eastern Market Indicator (EMI) finished at 941c/kg clean, down 129c/kg since the start of the season and was 323c less than same week last year.
"The improving market conditions as the week progressed resulted in the pass-in rate dropping from 16.7 per cent on Tuesday to 9.6 per cent on Thursday," Dr Morgan said. "The greatest gains were from 19.5 to 21 microns and trade reports described the market as 'firm' with a 'lot of interest'.
"Among other fibres, December futures for cotton rose by 3 per cent during the week, closing at $US 75.21 on Friday."
Elders national wool manager Andrew Dennis said the wool market's 334 cents/kg fall since March for 21 micron finally registered a positive.
However, he said the market was definitely not out of the woods yet.
"China is still slowing with export growth dropping sharply to a mere one per cent year-on-year last month, from 11.3 per cent in June," Mr Dennis said.
"Collapsing exports, falling corporate profits and rising inventory all increase the risk of a rise in unemployment."
Mr Dennis said the Chinese Government had the means to ensure employment to aid recovery.
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