In the last sale before the Christmas break, the Australian wool market reached its highest closing level for the season when it finished 0.4 percent higher, on average, at sales in Sydney, Melbourne and Fremantle.
The AWEX EMI rose by 7c (+0.7 percent), ending the week at 1005c/kg. This reflected increases of 6c (+0.6 percent) in the North and 9c (+0.9 percent) in the South, with their corresponding Regional Indicators finishing the week at 1041c and 976c clean, respectively. The Western Indicator fell by 2c (-0.2 percent), finishing the week at 996c.
In a three day sale in Melbourne and a two day sale in Sydney, the AWEX EMI was unchanged on Tuesday, rose by 8c on Wednesday and fell by 1c on Thursday. The Western Indicator rose by 2c on Wednesday and fell by 4c on Thursday in a two day sale in Fremantle.
62,066 bales were on offer, compared with 62,754 bales last week, of which 11.0 percent were passed in, comprised of 7.9 percent in Sydney, 9.0 percent in Melbourne and 19.3 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 12.8 percent and 7.6 percent, respectively. 1,730 bales (2.7 percent) were withdrawn prior to sale and re-offered bales made up 10.2 percent of this week's offering.
When looked at in other currencies, the AWEX EMI increased by 15c (+1.7 percent) in US terms and by 6c (+1.0 percent) in Euro terms when compared with the previous sale.
The strength of the market in US terms is readily seen in comparisons with the 2002/03 season. The EMI in US terms yesterday (887c) was 192c above the 2002/03 peak of 695, but 185c below the peak of 1189c in Australian currency. The US exchange rate was around 55 to 60c then compared with 88c this week.
Although a bit mixed, it was another good week, with the market finishing on a strong note, the EMI up in both Australian and US currencies and good demand across the trade. A good note to finish on as sales go into the Christmas recess.
The stronger and better styled wools attracted very good competition. Prices held over most micron ranges, but eased at the fine end in the North yesterday. Average AWEX Micron Price Guides (MPGs) were down by 14c clean for 16.5 microns, by 16c for 17.0, and by 25c for 17.5 microns, but up by 4 to 5c for 18.0 and 18.5microns, up by 10c for 19.0, by 5c for 19.5, 9 to 10c for 20 to 21, by 1c for 22, down by 2c for 23 microns and up by 3c for 24 microns. Merino skirtings continued to be in good demand, as were oddments. Crossbreds fared well with an increase in average MPGs of around 3c at the fine end and 12c at the coarse end.
There was a good spread of competition with buyers for China and Europe dominant. The market has been through a good six months period, despite the early uncertainty due to the suspension of processing of new applications for quota in China.
Since Sale 1, the EMI has risen by 76c (by 90c in US currency) and average MPGs have risen by 25c for 16.5, 40c for 17.0, 63c for 17.5, 160c for 18.0, 148c for 18.5, 147c for 19.0, 125c for 19.5, 114c for 20.0, 81 for 21.0, 35c for 22.0, 27c for 23.0 and 34c for 24.0 microns.
Sales will resume in the week commencing 7 January when 54,400 bales are currently rostered for sale, an increase of 15.4 percent when compared with the same sale in January this year. In South African sales, the Cape Wools Indicator was down by 0.4 percent since last week against a 0.8 percent appreciation of the Rand against the US Dollar and a 1.1 percent appreciation against the Euro.