Australian wool market down

In another week when the US exchange rate dropped, the Australian Wool Market finished the week 0.8 percent lower, on average, at sales in Sydney, Melbourne and Fremantle.
The AWEX EMI decreased by 6c (-0.8 percent), ending the week at 738c/kg clean. This reflected decreases of 10c (1.3 percent) in the North and 2c (-0.3 percent) in the South, with their corresponding Regional Indicators finishing the week at 748c and 730c clean respectively. The sale in Fremantle saw the Western Indicator decrease by 5c (-0.7 percent), finishing the week at 702c/kg clean.
The EMI is now 105c (16.6 percent) above the closing value at sales prior to Christmas, but 16c below the season peak of 754c achieved three weeks ago.
65,406 bales were on offer (compared with 62,770 last week), of which 19.4 percent were passed in, comprised of 20.1 percent in Sydney, 18.6 percent in Melbourne and 20.0 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 21.6 percent and 21.8 percent respectively. 3,032 bales (4.4 percent) were withdrawn prior to sale and re-offered wools made up 14.0 percent of this week's offering.
The rise in the market has resulted in an average increase of almost 2,000 bales in weekly offerings since the resumption of sales in January. Total offerings (both of all wool and of fresh wool) have now lifted to above last year's corresponding levels, in a season when production is forecast to fall by 4 percent. When looked at in other currencies, the AWEX EMI decreased by 10c in US terms and by 9c in Euro terms when compared with last week's sale. The two week changes in these currencies are 30 US cents and 26 Euro cents.
In a three day sale, the AWEX EMI decreased by 1c on Tuesday (when only Melbourne sold), decreased by 4c on Wednesday and by 1c on Thursday. The Western Indicator fell by 2c on Wednesday and by 3c on Thursday.
Prices in Australian currency again fell when the US exchange rate dropped. The general quality of the offering remains an issue as was the relatively reduced strength in the buying activity of countries other than China over the last two weeks. Falls were seen across all Merino micron ranges, while the cross bred types were generally unchanged, or slightly up.
Better skirting types were generally well supported. Oddments had a mixed week being generally reported as firm or unchanged in the North and the South, but down in the West.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 70,432 bales are currently rostered for sale.