The opening sales in early August, saw the NRI rise 82 cents, this was followed by a lack of new business which resulted in sharp falls over the following fortnights sales. However by the end of week 9 there was clear indication that new business had been written, with buyers chasing passed-in lots and buying what they could on Wooltrade.
Given the current state of play, with supply concerns coinciding with China’s economic woes, it is impossible to forecast the market. Sentiment amongst the trade changes from one day to the next and from one company to another, giving the impression that no one really knows. Buyers returning from China also report the mood to be sombre, as everyone is busy watching the stock market. For the time being, it seems the hand to mouth purchasing
pattern will continue, and with little stock to smooth out the bumps, a volatile market will ensue.