In another strong week with a slightly smaller offering and a 0.4 percent drop in the US exchange rate, the Australian wool market finished 2.5 percent higher, on average, at sales in Sydney, Melbourne and Fremantle this week.
The AWEX EMI increased by 28c (+2.9 percent), ending the week at 1,008c/kg clean. This reflected increases of 26c (+2.6 percent) in the North and 31c (+3.2 percent) in the South, with their corresponding Regional Indicators finishing the week at 1,036c and 985c clean respectively. The Western Indicator rose by 18c (+1.8 percent), finishing the week at 1,003c/kg clean. All four Indicators are at season peaks; and it is the first time that the EMI has been above 1,000c since the last week before Easter in April 2003.
When compared with the start of the upward movement of the market in October, the EMI and the Northern, Southern and Western Indicators are now up by 267c (36.0 percent), 270c (35.2 percent), 265c (36.8 percent) and 286c (39.9 percent), respectively. 19 to 23 micron average AWEX Micron Price Guides (MPGs) are up by 304c to 323c clean over the period and by 236c for 24 micron wools. At the fine end, the changes are 213c for 17 micron wool, 264c for 17.5, 268c for 18 and 294c for 18.5 micron wool.
48,789 bales were on offer, compared with 52,262 last week, of which 4.0 percent were passed in, comprised of 1.8 percent in Sydney, 2.1 percent in Melbourne and 8.6 percent in Fremantle. Pass in rates for Merino fleece and skirtings were 3.4 percent and 3.9 percent respectively. The higher value for Fremantle was influenced by a pass-in rate of 13.5 percent yesterday. 975 bales (2.0 percent) were withdrawn prior to sale and re-offered wools made up 9.8 percent of this week's offering.
When looked at in other currencies, the AWEX EMI increased by 20c (+2.5 percent) in US terms and by 18c (+3.0 percent) in Euro terms when compared with the previous sale.
The changes in the EMI in US and Euro currencies since mid October are now 275c US (+49.6 percent) and 174 Euro cents (+39.4 percent). EMI in US terms (829c) is now 134c above the 2002/03 peak of 695. In a two day sale, the AWEX EMI rose by 16c on Wednesday and by 12c on Thursday. The Western Indicator rose by 13c on Wednesday and by 5c on Thursday.
Merino fleece wools were in very strong demand, with the biggest gains being made among the fine wools where the average MPGs rose by 35c (16.5 microns), 65 - 70c (17.0 to 18.0 microns), 51c (18.5 microns) and easing back progressively to 25c for the medium wools. A small selection of Ultrafine lots sold up to 37,000c per kg and AWEX reports that a number of lots of organic wool sold at premiums of up to 150c. Skirtings, particularly those with lower VM sold well, while oddments also made gains. The one soft spot in the market were crossbreds which eased by 1 - 5c clean.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 49,541 bales are currently rostered for sale.
Current estimates for the following three sales vary from 29,500 (North and South only) to 46,300, a fall of 19.1 percent over the four sale period when compared with last year. Two of those weeks include the North and South only. Buyers for China continue to dominate the market. There were no sales in South Africa this week. Meanwhile, the Australian Wool Exchange (AWEX) said its eastern market indicator (EMI) rose 12 cents to 1,008 cents a kilogram clean at sales on Thursday.
AWEX said that its northern indicator at sales in Sydney rose 7 cents to 1,036c/kg, the southern indicator at sales in Melbourne rose 16 cents to 985c/kg, and the western indicator at sales in Fremantle rose 5 cents to 1,003c/kg.
In Sydney, merino fleece of 19 microns and finer gained a further 25 to 30 cents, with 19.5 to 20 microns 15 cents higher. Merino skirtings of better style and length ended the day slightly dearer.
In Melbourne, 16.5 to 20 micron merino fleece increased by 35 cents on average, with 21.5 microns and coarser up to 10 cents dearer. Merino skirtings of 18 to 19.5 microns gained up to 30 cents, with the 21 to 21.5 micron range up to 20 cents stronger. Crossbreds finished the day 5 cents weaker, excepting only the 26 micron range. Locks and crutchings ended the day up to 10 cents dearer.
In Fremantle, 18.5 to 19.5 micron merino fleece gained 5 to 10 cents, with higher vegetable matter types of merino skirtings ending the day up to 10 cents stronger. Locks gained 5 to 10 cents, and Crutchings closed firm. Of the 23,968 bales offered, 5.3 percent were passed in. Sales will resume in Sydney, Melbourne and Fremantle on Wednesday.