The market will open anxiously this week as exchange rates hit new 23 year highs against the US Dollar, we remind you that our biggest customer China buy predominantly in US currency and this directly affects the prices they can pay. With only 7 rostered selling weeks left this year and supply concerns next year the fall will not be as bad as expected as topmakers and traders continue to stock suitable types. We expect the finewools hardest hit with falls between 20/40 cents clean per kilo and medium/broad types only 10/20.

       We are now seeing the wool quality particularly staple strength fall away drastically across Australia and the premiums for high tensile strength comparatively are widening by the day. Most Chinese mill types are for an average parcel strength of 30/31nkt with the range from 20/22nkt and higher used to make this average, also the position of break (midbreak) in the wool fibre is very important as mill types also need a 60 percent average maximum and higher midbreak lots also face large discounts.