Australian wool markets basically consolidated around the ruling levels this week at auction. Interest remained high for all wool types, with a surprising concentration of buyers attention shifting to the crossbred and not so surprising to the carding area once again. Merino fleece and skirtings were by no means neglected, but some price sensitivity was seen, particularly around the poorer and harder to place end of the selection. The AWEX EMI (Australian Wool Exchange- Eastern Market Indicator) slipped by a margin of 6ac clean/kg to close at 1812ac clean/kg, after setting a new daily record of 1820 on the opening day. It remains to be clear if that number will stand as an official record, as it was a nominal quoted EMI with just the Melbourne centre operating.
After such massive price gains last week, it was not entirely unexpected that the Merino fleece sector would come under some serious price consideration, which it inevitably did. The stronger AUD (Australian dollar) against the USD (US dollar) certainly hampered any chance of a further rise as the forex (foreign exchange) rate went 1.55% against the local market. The USD v AUD rate moved to the mid 79’s again after spending a week in the 0.78 range. With this movement predominant, the market actually performed admirably in the demand-driving currency of USD . Wool prices in general advanced 1.22% higher for the week to settle at 1437usc/clean kg on the EMI when expressed in USD.
Click here to access AWI's Wool Weekly Market Report (PDF 496 KB)