The Australian wool market finished 2.1 percent lower, on average, at sales in Sydney, Melbourne and Fremantle last week, as the US exchange rate rose by 3.1 percent. The AWEX EMI fell by 21c (-2.2 percent), ending the week at 953c/kg.
This reflected decreases of 17c (-1.7 percent) in the North and 25c (-2.6 percent) in the South, with their corresponding Regional Indicators finishing the week at 991c and 920c clean, respectively. The Western Indicator fell by 20c (-2.0 percent), finishing the week at 957c.
In a three-day sale in Melbourne and a two-day sale in Sydney, the AWEX EMI fell by 9c on Tuesday, by 9c on Wednesday and by 3c on Thursday. The Western Indicator fell by 16c on Wednesday and by 4c on Thursday in a two day sale in Fremantle.
60,012 bales were on offer, compared with 63,017 bales last week, of which 14.3 percent were passed in, comprised of 12.7 percent in Sydney, 13.4 percent in Melbourne and 19.1 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 15.1 percent and 12.0 percent, respectively. 2,521 bales (4.0 percent) were withdrawn prior to sale and re-offered bales made up 6.8 percent of this week's offering.
The New Zealand Merino Company offered 3,280 bales in Melbourne on Wednesday of which 12.6 percent were passed in. 90 bales (2.7 percent) were withdrawn prior to sale and 15.0 percent of the bales were re-offers. When looked at in other currencies, the AWEX EMI increased by 8c (+0.9 percent) in US terms and decreased by 3c (-0.5 percent) in Euro terms when compared with the previous sale.
Although easing in Australian currency, there was a lot of keen buying activity, with the market finishing on a strong note as it goes into four weeks of smaller sales. The market eased across all micron ranges with the average AWEX Micron Price Guides (MPGs) easing by 35c and 42c for 17.0 and 17.5 micron wools, by 26c for 18.0 and 18.5 microns, by around 20c for 19.0 to 22 microns and by 12c for 23 to 24 micron wool. AWEX reported that the prices for New Zealand wool sold on Wednesday were up to 30c greasy dearer than at last week's sale.
Skirtings eased during the week, after having been at very high levels in recent weeks. Oddment prices also softened with the Merino Cardings average MPG falling by 14c. Crossbred average MPGs were down by 12 to 14c.
There was another good spread of buyer activity again this week, with a stronger presence from buyers for China than seen in the last two weeks. Sales will be held in Newcastle, Melbourne and Fremantle next week, when 56,568 bales are currently rostered for sale. Present estimates for the following three sales vary from 57,300 to 59,572 bales, a decrease of 7.7 percent over the four-sale period when compared with last year.
In South African sales, the Cape Wools Indicator was down by 2.6 percent since last week against a 2.1 percent appreciation of the Rand against the US Dollar and a 0.6 percent appreciation against the Euro.