FED: Wool prices vary across markets

AAP General News (Australia)
12-11-1998
FED: Wool prices vary across markets

CANBERRA, Dec 11 AAP - Price movements varied across the wool market this week.

The Australian Council of Wool Exporters (ACWE) said in its weekly report that while
auction prices remained essentially unchanged in the eastern markets of Sydney and Launceston
they fell just over two per cent in Fremantle.

ACWE said the AWEX eastern market indicator gained one cent to finish at 508 cents per
kilogram clean, based on a drop of three cents in the north and a rise of four cents in the
south.

This saw their corresponding region indicators close the week at 518 and 499 cents per
kilogram clean respectively.

The Western region indicator fell 11 cents to 465 cents per kilogram clean, reflecting a
drop in auction prices last week when there was no sale in Fremantle.

A total of 86,118 bales were offered for sale with 17.4 per cent passed in, comprising 11.7
per cent in Sydney, 12.5 per cent in Launceston and 26.7 per cent in Fremantle.

In its weekly wool report Wesfarmers Dalgety said the pass-in rates had risen above recent
levels because of strong grower resistance to prices in the west where 32.1 per cent had been
passed in on Thursday.

Altogether 104,000 bales are expected at the final sales before Christmas in Sydney,
Melbourne and Fremantle next week, but ACWE and Wesfarmers expected the market to hold up.

"The large offering next week will place pressure on the market, as will the presence of
tender wool. This could cause prices to ease early in the week," Wesfarmers said.

"However, the market is likely to close on a strong note before the three week break."

Both ACWE and Wesfarmers said the market had held up well in recent weeks considering
the large amounts of wool on offer and the demand situation.

AAP msl/cjh

KEYWORD: WOOL

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