Another good week at Australian wool auctions for sellers of Merino wools of all types and all descriptions. Prices were stronger from the outset and pushed upward right through to the close of selling. The crossbred sector didn’t fare as well as prices initially retreated, but pleasingly, towards the latter parts of the final day, levels consolidated as buyers purchasing intent became more willing. The AWEX EMI (eastern market indicator) advanced by another 1% or 16ac/clean due once more to the advance of prices being paid in the Merino sector. The EMI closed the week at 1566ac which is 19% higher compared to the same sale as last season.
The foreign exchange (forex) currency markets played outside the considered norms this week as the CNY (Chinese yuan) and USD (US dollar) cross rates against the AUD (Australian dollar) behaved in a manner rarely seen. The CNY is generally understood to be unofficially pegged against the USD but this week saw the CNY depreciate by 1.2% against the AUD whilst the USD barely moved at 0.2% lower. As such the USD EMI lifted by 10usc to close at 1224usc/clean kg and the CNY indicator acted conversely and fell albeit just slightly.
Click here to access AWI's Wool Weekly Market Report (PDF 894 KB)