The Australian wool market finished 3.6 percent higher, on average, at sales in Sydney, Melbourne and Fremantle this week, when the trade saw the start of a series of smaller offerings and a weaker Australian dollar.
The AWEX EMI increased by 34c (+3.7 percent), ending the week at 943c/kg clean. This reflected increases of 39c (+4.2 percent) in the North and 28c (+3.2 percent) in the South, with their corresponding Regional Indicators finishing the week at 977c and 914c clean respectively. The Western Indicator increased by 31c (+3.4 percent), finishing the week at 955c/kg clean.
The lift in the market more than recovered the "losses" seen over the last four weeks of a gradual easing in prices. The closing EMI of 943c was the second highest of the season.
When compared with the start of the upward movement of the market in October, the EMI and the Northern, Southern, and Western Indicators are up by 202c (27.3 percent), 177c (23.1 percent), 223c (31.0 percent) and 226c (31.5 percent), respectively. 19 to 23 average AWEX Micron Price Guides are up by 248 to 280c over the period and by 200c for 24 micron wools. At the fine end, the changes are 106c for 17 micron wool, 140c for 17.5, 162c for 18 and 196c for 18.5 micron wool.
44,715 bales were on offer (compared with 69,214 last week), of which 7.2 percent were passed in, comprised of 5.2 percent in Sydney, 5.0 percent in Melbourne and 13.4 percent in Fremantle. Pass in rates for Merino fleece and skirtings were 6.8 percent and 6.9 percent respectively. 2,856 bales (6.0 percent) were withdrawn prior to sale and re-offered wools made up 8.1 percent of this week's offering.
When looked at in other currencies, the AWEX EMI increased by 19c (+2.7 percent) in US terms and by 16c (+3.0 percent) in Euro terms when compared with the previous sale.
The changes in the EMI in US and Euro currencies since mid October are now 179c US (32.3 percent) and 114 Euro cents (25.8 percent). In a two-day sale in Sydney and Melbourne, the AWEX EMI increased by 19c on Wednesday and by 15c on Thursday. The Western Indicator increased by 19c on Wednesday and by 12c on Thursday.
The keen competition was not unexpected, with the downturn in offerings and the good close to last week. Increases were seen across all types and all micron ranges with the change in the 17 to 18.5 average Micron Price Guides (43 to 52c) only just behind those for 19 to 21 micron wool. The better Merino fleece types with good Staple Strength values were very keenly sought.
Similarly, there was strong competition for Merino skirtings, particularly those with low Vegetable Matter. The picture was similar for oddments; and increases of 10 to 15c were seen in the average crossbred Micron Price Guides.
Sales will be held in Sydney, Melbourne and Fremantle next week in a two day sale for all centres, when 51,427 bales are currently rostered for sale. Current estimates for the following three weeks are expected to fall back, ranging between 38,300 (Sydney and Melbourne only) and 56,500, a decrease of 22.3 percent over the same period last year when sale volumes were increasing. The AWEX Five Week Forecast shows the current estimates for the next two to be less than the previous estimate and to be up for the third week.
In South Africa, the Cape Wools Indicator rose by 3.6 percent against a 2.0 percent depreciation of the US dollar exchange rate and a 1.4 percent depreciation of the Euro exchange rate.
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