Wool prices declined everywhere this week, when expressed in US$ terms. Demand is not so weak, but sales are depressed by currency variations in the Southern Hemishpere. China's wool textile production is far from surging at the same time with prices falling in Nanjing.
Wool prices were once more down this week in Australia, as a result of a rise in the domestic currency.
The benchmark Eastern Market Indicator (EMI) fell 8 Australian cents or 1.2 percent to 640 cents per kilo clean.
Prices dropped 0.8 percent or 1 cent in the west with the regional indicator closing at 623 cents.
Wool prices declined at the start of the week in line with a jump in the Australian dollar. Prices partly recovered on Thursday after a decrease in the Aussie currency.
The Australian dollar finally gained 1 percent against the US dollar, rising 1.5 percent against the euro.
The EMI fell 2 cents in US$ terms (- 0.4 percent) to 477 cents. The same indicator was up 0.2% and 0.5% in euro and yen terms, respectively.
In addition to a rise in the Aussie dollar, the fall in prices also reflects the lower quality in wool on offer, compared with bales last week proposed in Newcastle.
Demand was not so weak and could reamin steady in the next week, the last before a three-week recess.
Prices again declined in South Africa, in line with lower prices in Australia and a jump in the domestic currency.
The Cape Wools indicator was down 8 cents or 3.5 percent to 23.32 rands per kilo clean.
In US$ terms, the same indicator declined 3 cents or 0.8 percent to 355 cents.
In New Zealand, prices also dropped in Napier and Christchurch.
Wools ranging from 25 to 32 microns fell 3.1 percent in US$ terms, reflecting a rise in the kiwi dollar.
In Nanjing, the NWM Indicator decreased by 310 yuan per ton or 4 cents per kilo.
Uruguayan wool tops fell 1,450 yuan or 3.81 percent. Sub-indicators for Australian wool tops and Australian clothing wool were left unchanged.
With winter gaining ground, demand from China's wool textile industry should be stronger than it is. With year-end holidays in sight, demand is not expected rebounding in the short term.
