The Australian wool market finished 3.5 percent lower, on average, at sales in Newcastle, Melbourne and Fremantle this week. The AWEX EMI fell by 29 Aust cents (3.3 percent), ending the week at 839 Aust cents a kg. This reflected falls of 24 Aust cents (2.6 percent) in the North and 34 Aust cents (4.1 percent) in the South, with their corresponding Regional Indicators finishing the week at 885 Aust cents and 800 Aust cents clean, respectively.
The Western Indicator fell by 30 Aust cents (3.7 percent), finishing the week at 790 Aust cents. n a three day sale in Newcastle and a two day sale in Melbourne, the AWEX EMI fell by 8 Aust cents on Tuesday, by 19 Aust cents on Wednesday and by 2 Aust cents on Thursday. The Western Indicator fell by 20 Aust cents on Wednesday and by 10 Aust cents on Thursday in a two day sale in Fremantle.
A total of 55,911 bales were on offer, compared with 52,414 bales last week, of which 20.5 percent were passed in, comprised of 12.3 percent in Newcastle, 21.6 percent in Melbourne and 28.0 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 25.7 percent and 14.3 percent, respectively.
2,457 bales (4.2 percent) were withdrawn prior to sale and re-offered bales made up 11.4 percent of this week's offering. In another week of wildly fluctuating exchange rates, the US exchange rate (source RBA) was 3.14 Aust cents lower on Monday when compared with Thursday of last week.
It was then up by 4.81 Aust cents on Tuesday in response to the announcement of Federal Government's Aust dollar 10.4 billion fiscal stimulu on Thursday to close at 66.81 Aust cents, down 2.35 Aust cents (-3.4 percent) since the last sale. Prices came back for all Merino types and micron ranges as demand continues to be down and there was less of a downward movement in exchange rates to buffer the fall in prices in Aust dollar.
It is unfortunate that this coincided with an excellent offering of fine wools in Newcastle where the sale opened around 100 Aust cents down, and more for the better types. Average AWEX Micron Price Guides (MPGs) were down by 61 Aust cents clean for 16.5 microns, by 86 Aust cents for 17.0 microns, by 68 Aust cents for 17.5 microns, by 44 Aust cents for 18.0 microns, by 41 Aust cents for 18.5 microns, by 36 Aust cents for 19.0 microns and by 44 Aust cents for 19.5 microns.
The 20.0 micron wool average MPG was down by 29 Aust cents clean, 21.0 microns by 29 Aust cents, 22.0 microns by 24 Aust cents, 23.0 microns by 28 Aust cents, and 24.0 microns was up by 5 Aust cents. 24 micron wools were in short supply and experienced good competition. Prices for skirtings held reasonably well in Newcastle, but eased in the South and the West.
Oddments fared better than other types during the week with the AWEX average Merino Cardings MPG lifting by 5 Aust cents. Crossbreds had a mixed week, easing sharply for fine and medium types but picking up at the coarse end. Buyers for Italy led the way in Newcastle, with buyers for China dominant on a national basis and some support from buyers for India.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 71,101 bales are currently rostered for sale. This is 9,100 bales above the estimate released on Monday and will place pressure on the market. Present estimates for the following two sales are 53,595 and 54,700 bales, respectively. An increase of 2.1 percent over the three sale period when compared with last year.
The New Zealand Merino Company will also offer 3,050 bales in Melbourne next week and is rostered to offer 2,925 bales in Week 18. In South African sales, where 6,171 bales were on offer, the Cape Wools Indicator was down by 5.1 percent since last week against a 0.1 percent depreciation of the Rand against the US Dollar and 0.1 percent depreciation against the Euro.
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