In a week of rising exchange rates and high pass-in rates, the Australian Wool Market finished the week 2.2 percent lower, on average, at sales in Sydney, Melbourne and Fremantle after the Easter recess.
The AWEX EMI decreased by 14c (-1.9 percent), ending the week at 714c/kg clean. This reflected decreases of 14c (-1.9 percent) in the North and 13c (-1.8 percent) in the South, with their corresponding Regional Indicators finishing the week at 725c and 705c clean respectively. The Western Indicator, which was coming off an extra week's break, decreased by 20c (-2.9 percent) finishing the week at 667c/kg clean.
The EMI remains at 81c (12.8 percent) above the closing value at sales prior to Christmas, but 40c below the season peak of 754c achieved in the second sale in March.
65,339 bales were on offer (compared with 46,392 before the break) of which 23.5 percent were passed in, comprised of 20.6 percent in Sydney, 21.0 percent in Melbourne and 27.8 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 25.5 percent and 24.9 percent respectively. 4,965 bales (7.1 percent) were withdrawn prior to sale and re-offered wools made up 14.2 percent of this week's offering.
When looked at in other currencies, the AWEX EMI increased by 3c in US terms and decreased by 8c in Euro terms when compared with the previous sale.
The US exchange rate continued the topsy-turvy pattern of the last two months, during which it fell from 75.4c in early March to 70.2c in late March, and is now up to 75.2c this week. Financial commentators have attributed the rise this week to an expectation among overseas markets that this week's inflation data will lead to a rise in interest rates by the Reserve Bank of Australia. While it is no joy to Australian growers, as reflected in the high pass-in rates, it should be noted that the EMI increased in US terms.
In a two day sale, the AWEX EMI decreased by 11c on Wednesday and by 3c on Thursday. The Western Indicator fell by 12c on Wednesday and by 8c on Thursday.
Falls were seen across all micron ranges on Wednesday, particularly in the 20 to 24 micron range. These wools were also generally more affected on Thursday. Fine wools indicators were marginally up in the North yesterday, with good demand for the better types in both the North and the South. Skirtings eased, with the heavier fault wools attracting little support.
Crossbreds were less affected than Merino types and were showed little change yesterday after easing on Wednesday.
Oddments held on reasonably well on Wednesday, but eased noticeably yesterday.
Buyers for China were dominant, followed by European interests.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 64,058 bales are currently rostered for sale.