The Australian wool market finished 0.5 percent lower, on average, at sales in Sydney, Melbourne and Fremantle this week in the first sale of the 2008/09 season. The AWEX EMI was unchanged, ending the week at 874 Australian cents a kg. This reflected a rise of 2 Aust cents (0.2 percent) in the North and a decrease of 5 Aust cents (0.6 percent) in the South, with their corresponding Regional Indicators finishing the week at 912 Aust cents and 840 Aust cents clean, respectively.
The Western Indicator fell by 9 Aust cents (1.1percent), finishing the week at 845 Aust cents. In a two-day sale in Sydney and Melbourne, the AWEX EMI rose by 2 Aust cents on Wednesday and fell by 2 Aust cents on Thursday. The Western Indicator rose by 1 Aust cent on Wednesday and fell by 10 Aust cents on Thursday in a two day sale in Fremantle.
Looking at the situation over the last twelve months, it was one of two halves, with rising prices in the first half followed by a falling market in the second half, before steadying over the last three sales. The EMI was 929 Aust cents in Week 01, rising to 1,045 Aust cents in Week 30 compared with 874 Aust cents this week.
A total of 45,544 bales were on offer, compared with 40,292 bales at the last sale, of which 7.9 percent were passed in, comprised of 5.4 percent in Sydney, 8.6 percent in Melbourne and 9.6 percent in Fremantle. Pass-in rates for Merino fleece and skirtings were 7.9 percent and 5.8 percent, respectively. 1,431 bales (3.0 percent) were withdrawn prior to sale and re-offered bales made up 7.2 percent of this week's offering.
The market remained firm this week against a United States exchange rate which again broke the 96 Aust cents barrier. Clearance rates were again good and competition continued to be strong for the better types of wool. Superfine average Micron Indicators (MPGs) all moved up, apart from 18.5 microns, whereas the medium and broad Merino MPGs all eased.
Average AWEX Micron Price Guides (MPGs) were up by 2 Aust cents for 17.0 microns, by 5 Aust cents for 17.5 microns, by 7 Aust cents for 18.0 microns, down by 9 Aust cents for 18.5 microns, up by 10 Aust cents for 19.0 microns and by 5 Aust cents for 19.5 microns. The 20.0 micron wool average MPG was down by 9 Aust cents clean, 21.0 microns by 11 Aust cents, 22.0 microns by 9 Aust cents, 23.0 microns by 10 Aust cents, and 24.0 microns by 3 Aust cents.
Skirtings continued to be strong demand, finishing the week on a firm note. Oddments again eased slightly with a 6 Aust cents fall in the average Merino Cardings MPG. Crossbreds were generally unchanged among the fine and medium types and up at the coarse end, where their average MPGs were up by around 3 Aust cents.
Buyers for China were dominant, with strong support from buyers for Europe and India. Sales will be held in Sydney, Melbourne and Fremantle next week, when 44,300 bales are currently rostered for the last sale before the mid-season break. There was no comparative sale in Week 2 last season.
The National Wool Production Forecasting Committee met yesterday. Theirs forecast for 2007/08 was 400 mkg, compared with the last forecast of 405 mkg in March and production of 430 mkg in the previous season. The forecast for 2008/09 was also revised downwards from the March estimate. In this case from 405 to 385 mkg, reflecting the deteriorating seasonal conditions and the rising prices for other farming enterprises.