Australian wool higher

The Australian Wool Market finished the 2005/06 season 1.0 percent higher, on average, at sales in Sydney, Melbourne and Fremantle. The AWEX EMI increased by 4c (+0.6 percent), ending the week at 729c/kg clean.
This reflected increases of 2c (+0.3 percent) in the North and 7c (+1.0 percent) in the South, with their corresponding Regional Indicators finishing the week at 740c and 720c clean respectively. The Western Indicator increased by 12c (+1.7 percent) finishing the week at 713c/kg clean.
The EMI is now 96c (15.2 percent) above the closing value at sales prior to Christmas, but 25c below the season peak of 754c achieved in the second sale in March. The corresponding Market Indicators at the end of last season were - EMI (718c), North (726c), South (711c), and the West (704c).
54,187 bales were on offer (compared with 36,305 last week). There was a good clearance, with 12.0 percent of the bales offered passed in, comprising 11.2 percent in Sydney, 10.3 percent in Melbourne and 15.8 percent in Fremantle.
Pass-in rates for Merino fleece and skirtings were 12.6 percent and 12.7 percent respectively. 2,231 bales (4.0 percent) were withdrawn prior to sale; and re-offered wools made up a relatively high 20.1 percent of this week's offering as the financial year drew to a close.
When looked at in other currencies, the AWEX EMI fell by 6c in US terms and by 1c in Euro terms when compared with the previous sale. It is likely that the fall in the US exchange rate is, at least partly, due to the market factoring in an expected further increase in US official interest rates today.
In a three-day sale in Melbourne and a two day sale in Sydney, the AWEX EMI remained the same on Tuesday, increased by 1c on Wednesday, and by 3c on Thursday. The Western Indicator increased by 6c on Wednesday and again on Thursday.
The Western Indicator has increased by 46c compared with an increase of 13c in the Eastern Indicator over the last two months, no doubt a reflection the relative quantities of fine wool in both regions.
The week finished on a strong note after a steady start on Tuesday and Wednesday. As in recent weeks, the medium fleece types received better support than the fine wools, with increases of 10c plus reported in some Micron Indicators.
Skirtings were in keen demand, finishing on a strong note. Crossbreds eased slightly in Melbourne on Tuesday, but recovered those losses over the next two days. Oddments were generally up during the week.
Buyers for China were dominant, with good support from others. Sales will be held in Sydney, Melbourne and Fremantle next week, when 75,846 bales are currently rostered for sale. The National Wool Production Forecasting Committee meets next Thursday. The current forecasts for this season and next are 456 mkg (-4 percent) and 465 mkg (+2percent), respectively.