This only partly represents the volatility seen over the last three weeks during which the exchange rate rose above 88¢ two weeks ago and remained there until the end of last week, before moving back below 85¢ in the wake of this week's global financial market turmoil. The lower exchange rate this week took some of the pressure off the market in A$ terms.
The exchange rate against the Euro also experienced considerable change, reaching 64.5 Euro cents last week before settling this week at 0.49 Euro cents (-0.8%) lower than the last sale to close at 62.54 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI decreased by 50¢ (-6.3%) in US terms and by 39¢ (-6.7%) in Euro terms when compared with the previous sale.
The EMI in US terms (747¢) is 52¢ above the 2002/03 peak of 695¢.
There was significant interest in how the market would open on Tuesday. As it turned out, the 7.4% fall in the Northern indicator was in line with general trade expectations. On a relative basis, fine wools were the least affected and crossbreds were the most severely affected, as were non-fleece types.
A firming in the market over Wednesday and Thursday saw the average Micron Price Guides (MPGs) for superfine wools finish down by 3.5% to 4.5%, other Merino wools down by 5% to 6% and crossbreds down by around 10%. Skirtings picked up yesterday, while oddments were generally unchanged after their initial fall.
High pass-in and withdrawal rates by growers indicated a considered approach by that sector of the industry in this period of uncertainty. Purchases were widely spread, but with a noticeable reduction in activity by key buyers for China.
Sales next week will be held in Sydney, Melbourne and Fremantle when 43,410 bales are currently rostered for sale. Current estimates for the following three sales vary from 47,500 to 52,500, a decrease of 6.3% over the four sale period when compared with last year.
The exchange rate against the Euro also experienced considerable change, reaching 64.5 Euro cents last week before settling this week at 0.49 Euro cents (-0.8%) lower than the last sale to close at 62.54 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI decreased by 50¢ (-6.3%) in US terms and by 39¢ (-6.7%) in Euro terms when compared with the previous sale.
The EMI in US terms (747¢) is 52¢ above the 2002/03 peak of 695¢.
There was significant interest in how the market would open on Tuesday. As it turned out, the 7.4% fall in the Northern indicator was in line with general trade expectations. On a relative basis, fine wools were the least affected and crossbreds were the most severely affected, as were non-fleece types.
A firming in the market over Wednesday and Thursday saw the average Micron Price Guides (MPGs) for superfine wools finish down by 3.5% to 4.5%, other Merino wools down by 5% to 6% and crossbreds down by around 10%. Skirtings picked up yesterday, while oddments were generally unchanged after their initial fall.
High pass-in and withdrawal rates by growers indicated a considered approach by that sector of the industry in this period of uncertainty. Purchases were widely spread, but with a noticeable reduction in activity by key buyers for China.
Sales next week will be held in Sydney, Melbourne and Fremantle when 43,410 bales are currently rostered for sale. Current estimates for the following three sales vary from 47,500 to 52,500, a decrease of 6.3% over the four sale period when compared with last year.
