Market retreats from bigger bale offering

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Bob GarnantCountryman
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The wool market retreated by 14 Australian cents last week, from a larger 46,249-bale national offering.

Australian Wool Industries Secretariat executive director Peter Morgan said the Western Market Indicator had the greater easing (-2.1 per cent) which partly counteracted its greater increase prior.

"The WMI had a significant 57c/kg increase two weeks ago, compared to when the Eastern Market Indicator rose by only 28c/kg," he said.

"Good support last week was at the fine end of the market in Sydney, where a 12.7 micron lot sold for 13,000c/kg."

Morawa woolgrower Ofelia Kowald and son Andrew attended the Western Wool Centre where their family's JAK clip sold to a top of 827c/kg greasy.

The nine-bale 18.1 micron line had a length of 96mm and was sold slightly above evaluation in the Elders catalogue.

One lot of three bales of 19.1 micron wool passed in possible due to its extra length of 118mm, according to Elders.

As a practising wool classer Mrs Kowald, who runs 2000 breeding ewes with husband Jeff, said they were pleased with their September shorn clip.

"We are keen to have lots of input when the shearing team from Geraldton take off our annual clip," she said. "We have decided to change to a July shearing next year to avoid grass seed.

"Jeff, who is 75, cleared our farming property when he was 21 and our son is keen to continue with the farm."

The couple and their son now operate a 50/50 crop/sheep program with 1600 hectares dedicated to the former.

They buy rams from Woolkabin stud, based at Woodanilling.

Elders technical manager Danny Burkett said like many markets, wool suffered due to global uncertainty generated by the debacle in the US.

"The situation is resolved now until January, but not without some collateral damage and a dent in consumer confidence," he said.

"As a result we expect volatility, which does highlight the value in hedging wool."

Mr Burkett said in the longer term there should be an upward trend for wool prices with a growth in consumption of luxury goods in China.

"Experts predict Chinese consumers, who would reach the income bracket where luxury goods were purchased would rise from the current 170 million to 295 million by 2020," he said.

This week's wool market will increase to 47,303 bales, with estimates for the following two weeks to be 48,386 and 49,800 bales.

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