The Australian wool market finished 2.1 percent higher, on average, at sales in Sydney, Melbourne and Fremantle this week after the US exchange rate fluctuated over a 5c range. The AWEX EMI rose by 20c (+2.1 percent), ending the week at 979c/kg.
This reflected increases of 23c (+2.3 percent) in the North and 18c (+1.9 percent) in the South, with their corresponding Regional Indicators finishing the week at 1019c and 946c clean, respectively. The Western Indicator rose by 19c (+2.0 percent), finishing the week at 989c.
In a three-day sale three-day sale in Sydney and Melbourne, the AWEX EMI rose by 41c on Tuesday, fell by 10c on Wednesday and by 11c on Thursday. The Western Indicator rose by 33c on Wednesday and fell by 14c on Thursday in a two-day sale in Fremantle.
58,235 bales were on offer, compared with 52,753 bales last week, of which 6.2 percent were passed in, comprised of 4.8 percent in Sydney, 4.2 percent in Melbourne and 13.5 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 5.5 percent and 4.9 percent, respectively. 1,471 bales (2.5 percent) were withdrawn prior to sale and re-offered bales made up 10.7 percent of this week's offering.
When looked at in other currencies, the AWEX EMI rose by 3c in US terms on Tuesday, before finishing the week down by 5c (-0.6 percent) and down by 5c (-0.8 percent) in Euro terms when compared with the previous sale.
The market opened very strongly carried after last week's good close and a 3.9 percent depreciation in the US Exchange rate. 19 to 22 micron wools in the North did particularly well with their AWEX Micron Price Guides rising by 68 to 78c clean on Tuesday and the pass-in rate for fleece wool falling to 2.8 percent. Merino Prices eased the following day (when the exchange rate gained 1.5 percent) and again on Thursday, with the finer microns down for the week, and the medium and broader end up on last week. Better styled and stronger wools continued to attract good support throughout the week. A 1PP lot measuring 12.3 microns from the renowned Hillcreston/Pine Hill sold for 73,000c greasy in Sydney on Thursday. Week-on-week changes in the average AWEX MPGs were -15c for 16.5 microns, -6c for 17.0, -10c for 17.5, +2c for 18 microns, +29 to +32c for 18.5 to 20, +37c for 21.0, +31c for 22.0, +19c for 23.0, +25c for 24.0 and +14c for 25.0 microns.
Skirtings also opened strongly on Tuesday and held up well when the fleece wools eased on Wednesday and Thursday. Similarly, oddments opened on an upward market and retained most of their gains, with the Merino Cardings average MPG up by 7c for the week. Crossbreds also finished up for the week, with their average MPGs up by around 25c at the fine end and easing to +10c at the coarse end.
Buyers for China were dominant together with strong support from buyers for Europe. Sales will be held in Sydney, Melbourne and Fremantle next week, when 54,605 bales are currently rostered for sale. Present estimates for the following three sales vary from 51,200 to 51,200 bales, a decrease of 11.6 percent over the four sale period when compared with last year. The New Zealand Merino Company will also offer 3,700 bales in Melbourne next week.
Progressive auction offerings of Australian wool are 15.1 percent less than in the same period last year. In South African sales, the Cape Wools Indicator was up by 1.4 percent since last week against a 3.0 percent depreciation of the Rand against the US Dollar and a 3.0 percent depreciation against the Euro.