A rather mundane series of events this week at Australian wool auctions with a largely unchanged market being the result. This is well and truly reflected by the AWEX EMI (eastern market indicator) being unchanged at 1525ac/clean kg. Obviously the USD EMI adjusted just to the forex rate being 0.45 lower and as such fell 5usc to 1215usc/clean kg.
The ruling sentiment around wool remains positive from all sectors as local traders and growers are largely comfortable operating within the current levels of trade. Generally speaking, buyers are seemingly able to pass on the price up the chain and growers are mainly accepting of the offered values. Daily adjustments to price due to currency and finance availability will continue to occur as will the depression of prices due to harder to place sale lots. The growing incidence of higher PobM (position of break in the middle) and higher CVH% (co-efficient of variation of hauteur %) sale lots being the primary cause.
Click here to access AWI's Wool Weekly Market Report (PDF 915 KB)