This was a sad week for wool. Prices slightly declined with the benchmark EMI (Eastern Market Indicator) losing 4 Australian cents on Thursday to 726 cents per kilo clean after being unchanged on Tuesday and Wednesday.
A small decline in the US$ against the Australian currency could explain the low level in demand.
Prices were sharply down in euro terms at the same time, due to a fall in the Australian dollar against the European currency.
Prices of finer types were generally lower with European processors still waiting for the start of the new season.
Average price for 18.5 micron rose 10 Australian cents in Sidney, however.
The current crisis in wool apparel sales was fully detailed by the IWTO (International Wool Textiles Organisation) during its annual meeting in Hobart, Tasmania.
Wool is losing market shares on womenswear market while more resisting on menswear market, the IWTO said.
This is a clear sign that a lack of promotion is depressing sales, according to wool processors.
Australian wool growers funded world wool promotion through their Woolmark brand until 1999. Ad and promotion campaigns were paid by a tax levied on growers' revenues.
Processors would like growers renewing with this system but are facing strong opposition in Australia.
Australia's wool industry is increasingly dependent on China's market and more interested in developing direct sales to Chinese processors than promoting wool consumption at retail.
Wool organisations this week supported free trade negotiations between Australia and China that could stimulate sales to the PRC, they anticipate.
Prices were down in South Africa, mainly due to the high level in the rand although the currency was weaker compared with previous sales two weeks earlier.
Cape Wool's indicator lost 3.1% to 25.39 rand per kilo clean with prices dropping across the board.
Nex sales in Port Elisabeth will take place on May 4.
