The Australian Wool Exchange (AWEX) said its eastern market indicator (EMI) rose 2 cents to 749c a kg clean on Thursday, compared with previous sales on July 5. AWEX said its northern indicator at sales in Sydney gained 3 cents to 769c/kg, the southern indicator at sales in Melbourne rose 2 cents to 732c/kg and the western indicator at sales in Fremantle fell 2 cents to 727c/kg.
The Northern Region market made gains across most types of Merino fleece, with 19-20.5 microns closing the day 5 to 10 cents stronger. Locks firmed 10 to 15 cents and Crutchings were 5 to 10 cents dearer. In Melbourne, there were 5 to 8 cent improvements for 17.5-21 micron Merino fleece. Merino skirtings prices ended the day slightly stronger overall, with some interest reserved for 19-20 micron types.
Crossbreds of 25 and 26 microns gained 6 to 7 cents, while Crutchings and washing Locks eased. In Fremantle, Merino skirtings closed up to 10 cents clean cheaper. Carbo Locks and Stain Crutchings both eased 5 cents.
Of the 30,056 bales offered, 12.6 percent were passed in. Sales will resume in Melbourne on Tuesday with about 25,281 bales on offer. Meanwhile The Australian Wool Market fell by 0.4 percent, on average, to start the 2006/07 season at sales in Sydney, Melbourne and Fremantle.
This was the first week in which AWEX used updated calculations to determine the various Indicator values. Last week's Indicators have been recalculated on the new basis to enable correct comparisons between this week and last week's market. The new calculations result in higher Indicator values.
Last week's closing indicators move from 729 to 749c (EMI), 740 to 771c (Northern Indicator), 720 to 730c (Southern Indicator) and 713 to 735c (Western Indicator).
The AWEX EMI remained the same ending the week at 749c/kg clean. This reflected a decrease of 2c (-0.3 percent) in the North and an increase of 2c (-0.3 percent) in the South, with their corresponding regional indicators finishing the week at 769c and 732c clean respectively. The Western Indicator decreased by 8c (1.1 percent) finishing the week at 727c/kg clean.
Some 73,877 bales were on offer (compared with 54,187 last week). There was a good clearance, with 11.7 percent of the bales offered passed in, comprising 11.1 percent in Sydney, 9.8 percent in Melbourne and 14.3 percent in Fremantle.
Pass in rates for Merino fleece and skirtings were 11.5 percent and 14.8 percent respectively. 1,586 bales (2.1 percent) were withdrawn prior to sale and re-offered wools made up 14.1 percent of this week's offering.
When looked at in other currencies, the AWEX EMI rose by 10c in US terms and by 2c in euro terms when compared with the previous sale. Most of the increase in the US exchange rate occurred last Friday, when it lifted almost 1.5c from a low base (by comparison with recent week's data) and confirmation of the rise in US interest rates.
In a three day sale in Sydney and a two day sale in Melbourne, the AWEX EMI decreased 2c on Tuesday, remained the same on Wednesday, and increased by 2c on Thursday. The Western Indicator decreased by 6c on Wednesday and by 2c on Thursday. The week finished on a firm note after a slight easing at the beginning of the week. As usual, better style and strong fleece types were in good demand, but they were outnumbered by lesser wools.
Gains of up to 15c in the indicator value were seen in the 18 to 22 micron ranges. Skirting types were generally unchanged during the week, crossbreds moved upwards yesterday after easing on Wednesday and oddments weakened on Wednesday, with a recovery in some types yesterday. Sales will be held in Melbourne next week, while Sydney and Fremantle are in recess, when 25,281 bales are currently rostered for sale.
The results of National Wool Production Forecasting Committee will be available later today. Little change is expected in last year's forecast, while there is general expectation that this year's forecast will be wound back, given the poorer seasonal conditions.