Wool Prices Up in US Dollar Terms while AU Prices Decline

In U.S. terms, the Australian Wool Exchange Eastern Market Indicator actually rose, gaining 9 cents to 948c/kg, while the Australian wool market continued to deteriorate this week despite the smallest catalogue in 12 months being offered to the trade.

The EMI fell a further 26 cents to close at 1270 cents. The currency appeared to be an influencing factor with it briefly hitting US75 cents, an increase of 2 cents compared to last week. Currency traders highlighted strong global commodity prices and general US dollar weakness as elements of the lift in the AUD. The trend was lower from the outset and prices fell as much as 40 cents on the opening day.

The finer microns were the hardest hit during the week, falling 45 cents. Conversely, the limited average Spinner types continued to attract good competition and were largely in line with the previous sale. Less than 45 percent of the Merino fleece sector was in the highly sought after 1 percent vegetable matter and lower range, which was the lowest percentage for the season. Prices for Merino skirtings were trimmed back but the reductions were not as significant as those in the fleece catalogue, the lower VM types continued to attract strong demand.

Reprinted in part from www.awex.com.au