The Australian wool market finished 0.3% higher, on average, at sales in Sydney, Melbourne and Fremantle this week.
The AWEX EMI increased by 3¢ (+0.3%), ending the week at 940¢/kg clean. This reflected increases of 2¢ (+0.2%) in the North and 4¢ (+0.4%) in the South, with their corresponding Regional Indicators finishing the week at 972¢ and 913¢ clean respectively. The Western Indicator rose by 3¢ (+0.3%), finishing the week at 945¢/kg clean.
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 199¢ (26.9%), 206¢ (26.9%), 193¢ (26.8%) and 228¢ (31.8%), respectively. 19 to 23 average AWEX Micron Price Guides are up by 218¢ to 249¢ over the period and by 183¢ for 24 micron wools. At the fine end, the changes are 119¢ for 17 micron wool, 156¢ for 17.5, 154¢ for 18 and 187¢ for 18.5 micron wool.
53,643 bales were on offer, compared with 53,045 last week, of which 7.2% were passed in, comprised of 5.6% in Sydney, 5.8% in Melbourne and 9.9% in Fremantle. Pass in rates for Merino fleece and skirtings were 8.4% and 3.7% respectively. 1,156 bales (2.1%) were withdrawn prior to sale and re-offered wools made up 13.6% of this week's offering.
The US exchange rate (RBA) was 0.64¢ lower on Monday when compared with Thursday last week. It rose by 0.24¢ on Tuesday, fell by 0.45¢ on Wednesday and by 0.02¢ on Thursday, to close at 82.45¢, down 0.87¢ (-1.0%) since the last sale. The exchange rate against the Euro fell by 0.45 Euro cents (-0.7%) to close at 60.59 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI decreased by 6¢ (-0.7%) in US terms and by 2¢ ( 0.4%) in Euro terms when compared with the previous sale.
The changes in the EMI in US and Euro currencies since mid October are now 221¢ US (+39.9%) and 128 Euro cents (+29.0%). In a two day sale, the AWEX EMI rose by 1¢ on Wednesday and by 2¢ on Thursday. The Western Indicator fell by 1¢ on Wednesday and rose by 4¢ on Thursday.
Although easing slightly in US terms, it was a good market and the trade reports that it finished on a solid note. 16.5 to 18.5 average Micron Price Guides were up by around 6¢, while others were mostly unchanged or slightly up. Fleece wools were up apart from an easing in the medium types on Wednesday in the West, which was more than recovered on Thursday. Skirting types and oddments had another good week, particularly on Thursday. Crossbreds were also in good demand with their average Micron Price Guides being up by around 5¢.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 43,537 bales are currently rostered for sale. Current estimates for the following three sales vary from 47,200 to 51,732 a fall of 11.5% when compared with last year. This week's AWEX Five Week Forecast again indicated a slight easing in expected quantities compared with last week's forecast. China remains as the dominant buyer.
In South Africa, the Cape Wools Indicator rose by 1.8% against an increasing US and Euro exchange rates.
