"Wool price surge" - really????

[mag]

“Wool prices surge “ - http://www.abc.net.au/rural/content/2005/s1371376.htm as quoted by the ABC rural team, sounds good does it not, really prices have risen in response to a few factors number one is the exchange rate has fallen to lower levels allowing mills once again to dive into the market and secure supply.

The majority of mills in Asia and the EU have a basic price idea of around $6.24 US a kilo for wools of around 20 micron so taking that as the benchmark price I have graphed the price from last month 18/4/2005 to the 18/5/2005 to show the effect of the currency movement on the price of wools using the $6.24 US cents per kilo as the benchmark price.

USD date AUD $AUD
$6.24 18/04/2005 0.76825 $8.12
$6.24 19/04/2005 0.76485 $8.16
$6.24 20/04/2005 0.76975 $8.11
$6.24 21/04/2005 0.77525 $8.05
$6.24 22/04/2005 0.77705 $8.03
$6.24 23/04/2005 0.78315 $7.97
$6.24 24/04/2005 0.78135 $7.99
$6.24 25/04/2005 0.78135 $7.99
$6.24 26/04/2005 0.77815 $8.02
$6.24 27/04/2005 0.77715 $8.03
$6.24 28/04/2005 0.77705 $8.03
$6.24 29/04/2005 0.77925 $8.01
$6.24 30/04/2005 0.78195 $7.98
$6.24 01/05/2005 0.78055 $7.99
$6.24 02/05/2005 0.78055 $7.99
$6.24 03/05/2005 0.77945 $8.01
$6.24 04/05/2005 0.77435 $8.06
$6.24 05/05/2005 0.77845 $8.02
$6.24 06/05/2005 0.78135 $7.99
$6.24 07/05/2005 0.77595 $8.04
$6.24 08/05/2005 0.77525 $8.05
$6.24 09/05/2005 0.77630 $8.04
$6.24 10/05/2005 0.77305 $8.07
$6.24 11/05/2005 0.77555 $8.05
$6.24 12/05/2005 0.77565 $8.04
$6.24 13/05/2005 0.76805 $8.12
$6.24 14/05/2005 0.76265 $8.18
$6.24 15/05/2005 0.76080 $8.20
$6.24 16/05/2005 0.76135 $8.20
$6.24 17/05/2005 0.75695 $8.24
$6.24 18/05/2005 0.75705 $8.24

[mag]

Well with the rural news people publishing trash – without full research, like the above article - the end result this week after that article was published was as follows:

Sydney Sale 15.1% passed in
Melbourne Sale 12.1% passed in
Fremantle Sale 23.5% passed in

A small percentage of these people would have read the article and made the choice based on the ABC news item and placed their wool on offer - and because they saw the headline 'Wool Market Surge" would have placed higher reserves on the wool. The end result, wool was passed in, and the wool producer then gets charged for offering the wool that was passed in at the sale.

gives you something to think about does it not? :mad: