Markets closed significantly lower this week after all types merinos, xbreds and cardings have fallen during the past 2 weeks. The signals as I have pointed out during the past 4/6 weeks are a combination of high exchange rates, increased levels of top and yarn stock around the World, credit squeezes and faltering World economies leading to a downturn in consumer confidence and spending. Finewool types 19.0 micron and finer were least affected this week finishing 10/20 cents cheaper, while medium wools fell 30/40 cents however inferior types carrying high V.M. or tender and low yielding were generally 50/70 cents cheaper. Cardings fell 20/30 cents and Xbred wools were 10/15 cheaper. The question now is where does the market bottom and find a new level, this will be determined by exchange rates and supply as grower resistance builds and auction passed-in and withdrawn rates grow. Suggest we are close to a short term bottom and oversea's mills are now seeing prices as more attractive, look for a small rally if exchange rates ease back under 0.925 but the longer term forecast is still lower post July.