Wool prices sharply declined this week in Australia with the Eastern Market Indicator (EMI) down 13 Australian cents or 1.8% to 727 cents.
Prices were unchanged in Fremantle, on average.
The low level of wool on offer (53,792 bales) in only two trading days did not support prices.
The Australian dollar slightly rose against the US dollar while more sharply increasing against a weakening euro.
Demand from Europe was therefore depressed.
Fine wool prices were dramatically down as a result, also due to the poor quality of wool on offer, especially in the north.
Average prices for 18.5 and 19 microns respectively fell 23 and 25 cents in Sidney.
Demand for mid-micron types was stronger with prices less significantly falling.
Broad wool prices even increased with 24 and 25 microns up 6 and 4 cents in the east, on average.
The level in fine wool prices will continue depending on the quality on offer, with prices of fine-quality lots possibly reaching very high levels.
Drought is increasingly affecting the eastern part of the country and the production of fine quality wool, consecutively.
