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Australian wool

demand weaker

SYDNEY: Demand for wool remains subdued ahead of the biggest offering of the 1995/96 season so far at sales in Sydney, Adelaide and Fremantle this week, the Australian Council of Wool Exporters said.

About 91,410 bales will be offered which is more than twice the average offerings of the new season that began July 1.

In the first four weeks of the season only 148,827 bales have been offered for sale with growers withdrawing wool due to weak demand and by rain-delayed shearing in southern areas.

Last week the eastern Australian market indicator firmed for a second week, closing seven cents up at 754 cents a kg clean.

But the council said trade reports suggest that demand conditions remain generally subdued with China, Australia's largest buyer, still virtually out of the market.

"There has been some revival of interest form Japanese buyers while Western Europe continues to buy cautiously but steadily, local mills are active and other sectors are taking relatively small quantities," the council said.

The International Wool Secretariat has said major exports of former Soviet Union wool has reduced competition at Australian exports and capped price.-Reuter