Expect the market to decline this week as the exchange rate has lifted 350 points since last weeks auction close, this follows 4 weeks of consecutive rises and falling exchange rates that saw medium wool prices rise 30/50 cents and finewool types 50/100. We should expect falls of 10/20 cents, but limited supply continues to hold the market even though demand is limited to small amounts of prompt business. In China where 60/75% of Australian wool is exported the outlook remains glum as economic conditions continue to deteriorate and confidence is poor, the Chinese stock market is down 70% from September 2007' to Sept 2008'. Spinners and weavers continue to struggle with limited orders although vertical mills which concentrate on the domestic market are faring better. As mentioned previously expect the volatility to remain until we see an expected general improvement in prices December onwards.