950818

Australian wool firms vs tiny offering

MELBOURNE: Australian wool prices continued to firm this week at sales in Newcastle and Melbourne against an exceptionally small offering of 24,651 bales, the Australian Council of Wool Exporters said.

The eastern Australian market indicator jumped seven cents to 754 cents a kg clean, nearly three percent below its level late June, but still seven percent above its level a year ago.

The national trade clearances rose to 89.5 percent.

The council said almost all merino categories posted rises, with the finer merinos doing best.

Best price gains in the merino combing wools were in the fine 19 micron category which rose 24 cents or 2.0 percent to 1034 cents a kg clean, and the 20m, up 14 cents to 859 cents.

Sales next week are in Sydney, Adelaide and Fremantle with the biggest offering of the 1995/96 season so far of about 91,410 bales.

Woolbroker and pastoral group Wesfarmers Dalgety said the market will have difficulty sustaining these price rises with the increasing supply situation in coming weeks.

In its weekly report, Wesfarmers Dalgety said the small quantities on offer had an unsettling effect on the futures market, pushing prices down 10 to 15 cents a kg.

The 21 micron deliverable contract closed unchanged at 872 cents for August, fell two cents to 825 cents for October, slipped 13 cents to 827 cents for December and dropped 10 cents to 832 cents for February.-Reuter