Sales resumed in Sydney/Melbourne yesterday after the 1 week Easter break, better medium wool types 19.5 and coarser were generally 5/10 cents dearer although the inferior types (tender/low-yielding) were 10 cents cheaper. Finewool types 18.5 and finer with good strength have had good recent gains as supply this time of year is limited and average clip microns are broadening with good rains in most area's during the past 6 months, these types were solid and expect prices to remain solid for the next 2/3 months.

     There is still a lot of negative sentiment coming out of key wool markets at present, obviously ongoing high exchange rates have had a major influence but also increasing inventories of top and yarn stock and the credit situation with banks restricting funds and increasing terms (ie. larger deposits needed and higher fees) is also evident. On the positive side selection is average at best at present and supply is small which is keeping good quality clips well sought after and attracting good premiums. Still expect a cheaper market in the short to medium term unless the exchange rate falls well below 90 US cents or supply deteriorates even further.