The Australian wool market finished 2.8 percent lower, on average, at sales in Sydney, Melbourne and Fremantle this week. The AWEX EMI fell by 26 Aust cents (3.4 percent), ending the week at 738 Aust cents a kg. This reflected falls of 37 cents (4.6 percent) in the North and 15 cents (2.0 percent) in the South, with their corresponding Regional Indicators finishing the week at 760 Aust cents and 721 Aust cents clean, respectively.
The Western Indicator fell by 14 cents (1.9 percent), finishing the week at 715 cents. In a three day sale in Melbourne and a two day sale in Sydney, the AWEX EMI fell by 5 Aust cents on Tuesday, by 13 Aust cents on Wednesday and by 8 cents on Thursday. The Western Indicator fell by 12 Aust cents on Wednesday and by 2 Aust cents on Thursday in a two day sale in Fremantle.
A total of 40,485 bales were on offer, compared with 57,149 bales last week, of which 21.1 percent were passed in, comprised of 19.6 percent in Sydney, 19.3 percent in Melbourne and 28.7 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 26.0 percent and 11.4 percent, respectively. 8,189 bales (16.8 percent) were withdrawn prior to sale and re-offered bales made up 12.1 percent of this week's offering.
The New Zealand Merino Company also offered 2,223 bales in Melbourne on Wednesday of which 26.1 percent were passed in. 249 bales (11.2 percent) were withdrawn prior to sale and 9.3 percent of the bales were re-offers. The week finished on a better note with signs of better more interest from Europe and prices going up in US currency by 29 Aust cents on Thursday to close the sale only 4 Aust cents less than last week.
It is not clear why this rise occurred. It may have been associated with the rate cuts in China and the United States during the week and the knock on effects they had on share markets and confidence. Unfortunately, the lift in the US exchange rate on Thursday meant that the rise did not flow to growers.
Falls in the AWEX Micron Price Guides (MPGs) for Merino wools varied from -0.9 to -7.2 percent; with the greatest falls occurring at the fine end. Average AWEX Micron Price Guides (MPGs) were down by 92 Aust cents for 17.0 microns, by 68 Aust cents for 17.5 microns, by 57 cents for 18.0 microns, by 47 Aust cents for 18.5 microns, by 17 Aust cents for 19.0 microns and by 18 Aust cents for 19.5 microns.
The 20.0 micron wool average MPG was down by 16 Aust cents clean, 21.0 microns by 18 Aust cents, 22.0 microns by 16 Aust cents, 23.0 microns by 25 Aust cents, and 24.0 microns by 6 Aust cents. Prices for Merino skirtings held up for the better types, but eased for other types. All crossbred types were down during the week.
As was the case last week, oddments were relatively less affected with the AWEX average Merino Cardings MPG being down by 8 Aust cents (1.8 percent). Buyers for China were dominant with support from buyers for India and for Europe. Sales will be held in Newcastle, Melbourne and Fremantle next week, when 52,482 bales are currently rostered for sale. Present estimates for the following two sales are 52,940 and 53,000 bales, respectively.
A decrease of 2.3 percent over the three sale period when compared with last year. The New Zealand Merino Company will also offer 3,150 bales in Melbourne next week. In South African sales, where 7,451 bales were on offer, the Cape Wools Indicator was down by 6.3 percent since last week against a 6.3 percent appreciation of the Rand against the US Dollar and a 7.1 percent appreciation against the Euro.
Comments
Comments are closed.