After prices rebounded as the currency stabilised around US87 cents, this proved to be shortlived as prices generally fell 15/20 cents for all merino fleece categories last week. I apologise for being negative during the past 2/3 months however all market signals have pointed to this slide for some time as the World economic conditions have deteriorated and I am sure readers of this website would prefer an honest opinion. Prices are still holding up reasonably well considering business is at an all time low as Chinese mills struggle to sell tops oversea's or domestically, but this is due mainly to the limited supply at present which will increase during the next 2/3 months. India is showing the same picture and business is very limited, Europe is now active as they buy the majority of there annual production during the 2nd half of the year but this is concentrated more on the better superfine types for spinning and weaving. Expect a fall of 10/20 cents again this week.