The Australian Wool Market eased slightly against a sharply rising US exchange rate, finishing the week 0.1 percent lower, on average, at sales in Newcastle, Melbourne and Fremantle. The AWEX EMI decreased by 1c (-0.1 percent) ending the week at 825c/kg clean.
This reflected a decrease of 3c ( 0.4 percent) in the North and no change in the South, with their corresponding Regional Indicators finishing the week at 852c and 802c clean respectively. The Western Indicator also remained unchanged, finishing the week at 823c/kg clean.
Despite the easing in the market, the respective Indicators remain well above the their levels of seven weeks ago, with the EMI and the Northern, Southern and Western Indicators being up by 84c, 86c, 82c and 106c, respectively.
21 to 23 Micron Indicators are now up by 125 to 135c over the period and by 79c for 24 micron wools. At the fine end, the changes are 11c for 17 micron wool, 50c for 18 micron wool and around 90 to 100c for 19 to 20 micron wool.
62,662 bales were on offer (compared with 56,590 last week), of which 12.9 percent were passed in, comprised of 8.8 percent in Sydney, 11.5 percent in Melbourne and 22.3 percent in Fremantle. Pass in rates for Merino fleece and skirtings were 12.3 percent and 9.4 percent respectively. 2,700 bales (4.1 percent) were withdrawn prior to sale and re-offered wools made up 10.5 percent of this week's offering.
When looked at in other currencies, the AWEX EMI increased by 8c in US terms and decreased by 3c in Euro terms when compared with the previous sale.
The changes in the EMI in US and Euro currencies over the last seven weeks are now 94c US and 50 Euro cents. The strengthening of the US exchange rate is due to a weakening of the US dollar against all major currencies. In a three day sale in Newcastle and Melbourne, the AWEX EMI, decreased by 4c on Tuesday, increased by 1c on Wednesday, and by a further 2c on Thursday. The Western Indicator fell by 5c on Wednesday, which it recovered on Thursday.
Although the EMI eased on Tuesday against a strong US exchange rate, the market finished the week on a strong note, with keen demand for the better wools and very high prices of up to 100,000 c/kg paid for some speciality ultrafine lots. Most Micron Indicators were up on Thursday, reflecting the good finish to the week. Skirtings, particularly those with low VM were in keen demand, crossbreds moved back up and oddments were firm after some losses early in the week.
Demand was led by China, with buyers for Europe strong in the Newcastle sale.
Sales will be held in Sydney, Melbourne and Fremantle next week when 73,076 bales are currently rostered for sale. The current forecasts over the following week leading up to the recess show a likely offering of 66,700. The total of both weeks is 16.2 percent above last year, as growers continue to take advantage of current market conditions. The National Wool Production Forecasting Committee meets next Thursday and will release its latest forecast the following day.