Australian wool prices slipped this week, losing 1.5 percent in average values as the market felt the pinch of a stronger Australian dollar, analysts said on Friday. The AWEX Eastern Market Indicator (EMI) fell 11 cents to finish the week at 713 cents a kg clean, based on falls of eight cents in the northern market (Sydney) and 14 cents in the southern market (Melbourne).
Their regional indicators ended the week at 730 cents a kg clean and 698 cents a kg clean, respectively.
There were no sales in Fremantle this week.
Wool sellers struggled as the Australian dollar traded between 76.5 and 77 US cents during the week, more than one cent higher than when the wool market previously closed last week.
"The strong correlation between the AUD and the wool market continues," said woolbroker Landmark.
The market failed to gain support from the limited amount of wool on offer in the second smallest offering of this season. Falls were seen across all micron categories with the exception of some broader wools in the north which remained firm.
"All micron ranges came under pressure on Wednesday, particularly so in the fine wools where prices moved downwards by 15 to 20 cents," said Peter Morgan of the Australia Wool Industries Secretariat.
"Additional pressure in this area came from the large offering of 18.5 micron wools in the south," Morgan said.
Notably, the southern 18 Micron Price Guide (MPG) fell 24 cents to 975 cents a kg clean, while the northern 23 MPG lost three cents to 718 cents a kg clean.
Of the week's offering of 35,995 bales, 15.5 percent were passed in.
Chinese interests again dominated sales, Morgan said.
Next week, 53,983 bales are currently rostered at auctions in Sydney, Melbourne and Fremantle.
Meanwhile, the Australian Wool Exchange (AWEX) said its eastern market indicator (EMI) fell two cents to 713 cents a kg clean at its sales on Thursday.
AWEX said its both its northern indicator (Sydney) remained unchanged at 730 c/kg while the southern indicator (Melbourne) fell two cents to 698 c/kg, respectively.
There were no sales in Fremantle on Thursday.
In Sydney, the market steadied following a fall on Wednesday, as better 19 microns and finer styles finished the week on a sound note, while there was some irregularities for shorter styles. The 20 micron and broader range closed very solid and unchanged, AWEX said.
In Melbourne, the market saw further falls, with 18 microns falling the most, losing 10 to 15 cents. Most other microns were up to five cents cheaper, while 19 microns were generally unchanged.
There were 17,435 bales offered for sale, of which 18.6 percent were passed in.
Australian wool sales continue in Sydney, Melbourne and Fremantle on Wednesday, June 15.
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