Prices rise, returns fall, for Aust. wool

Press, 15 January 1979, Page 18

Prices rise, returns fall, for Aust. wool

NZPA Sydney Although prices have been 'higher than at the end of last season, the first half of the present Australian wool-selling season has brought in slightly less than the same period last year, according to the Australian National Council of Wool-selling Brokers.

Auction proceeds for the first half of the 1978-79 season, which closed on December 14, are estimated provisionally at sAust474.osM — down sAustl4.4sM or about 3 per cent on the corresponding period last season, when the total was sAust4BB.sM.

Average acution prices rose 7.4 per cent above last season’s closing level, the brokers’ organisation savs.

The average price of wool sold at auction in the first half of the present season was 201.45 c a kilogram greasy or sAust3lB.B4 a bale, compared with 187.6 c a kilogram or SAust2BB.93 a bale for the same period last season.

Total trade purchases of Australian wool from all sources in the first half of the season amounted to about 1.47 M bales, compared with 1.61 M bales in the same period of 1977. Offerings at the last few sales of 1978 were severely reduced because of an industrial dispute affecting the Australian Wool Testing Authority. Japan was the main buyer throughout the first half, and in December was

taking more than 30 per cent of the offering, the council said. Western and Eastern Europe, although relatively subdued, traded steadily. Crossbred wools and cardings made the best price gains in the market in the first half of the season. Small gains were recorded in all other categories. Crossbred wools of 30 micron which closed on 279 c a kilogram clean are 14c or 5.3 per cent above their closing price of 265 c at the end of the 1977-78 season. Merino cardings on 283 c gained 27c or 10.5 per cent, while fine crossbred cardings on 260 c are 33c or 14.5 per cent up. Cardings are now 71c to 80c above their reserve

prices. Comebacks of 27 micron, on 292 c, gained 8c or 2.Bper cent. The strong demand for crossbred and cardings were a key factor in the 8c (2.6 per cent) rise in the clip price indicator from 310 c at the end of June to 318 c when the market closed on December 14. Average to broad Merino fleece wools, basic types in the world worsted trade made gains of 1.6 to 2.1 per cent. The 21-micron category on 347 c, put on 6c or 1.8 per cent.

The finer Merino combing wools made slow, steady gains in spite of occasional setbacks. The 19- on 360 c, are 5c or 1.4 per cent up, and the 20- on 356 c, 6c, or 1.7 per cent up.