After a rather sluggish start to the selling week at Australian wool auction sales, the market showed some signs of positive activity on the final day. The signals were all negative on the first day of operations and prices drifted as the market looked for a level at which new business could be conducted. By day's end levels on all wool types and descriptions were trading 30ac/clean kg lower. Overnight on Wednesday though it was being widely reported that better trade opportunities existed, not only from China, but India and Italy as well. Those encouraging signs were immediately transferred into the sale rooms on Thursday with a handy 20ac recovery in prices, and almost eliminating the losses of the previous day.
The AWEX EMI (eastern market indicator) finished the week at 1558ac/clean kg which was 14ac or 0.9% lower. A similar soften-ing of the EMI when expressed in USD occurred with a 0.8% or 10usc/clean kg devaluation. Still, these levels remain in heady territory being 18% higher in AUD and 24% higher in USD com-pared to the wool values being paid at the same period last spring.
Click here to access AWI's Wool Weekly Market Report (PDF 882 KB)