Comment

The wool market continues to strengthen. All types and descriptions are being keenly sort after and price levels have advanced weekly since sales resumed in early January. Buyers seem concerned simply for volume. The most inferior types were as keenly competed for as were the good lots this week. We couldn’t emphasis the variable range of quality on the market enough at the moment. It would be a fair assumption to suggest that the offering in the northern market this week would be the smallest (according to AWEX smallest in 5 years) and poorest quality selection in recent memory. We must be alarmed at the sudden deterioration in quantity and quality. But still the market goes up. No doubt customers will be doubting the level of price but those that don’t follow the market cautiously and regularly run a serious risk. We’ve seen what has happened in the last 3 years. Supply was still reasonable during that period but now the grower held stock numbers are more or less nil. This market is clearly driven by supply and if wool is needed, even in small volumes, the price is under pressure.