All the action this week at Australian wool auctions centred around the rising Merino fleece values locally. Business conditions remain relatively subdued as China was on holiday and most of this series gains can be attributed to the more advantageous forex (foreign exchange) rates. Given the extent of the positive gains that the Merino fleece sector extracted, it surprised some to see that a move of just 8ac/clean kg was recorded on the AWEX EMI (Australian Wool Exchange- Eastern Market Indicator). The indicator finished the week at 1820ac/clean kg which equalled the highest ever daily EMI level but set a new record as far as the EMI weekly closing figure goes.
The forex (foreign exchange) rates acted in a completely reverse manner to last week. The currency last week helped advance prices in USD by 17usc and shook the EMI 6ac lower in AUD terms, but this week saw the overseas demand weaken slightly and prices in US dropped almost identically by 16usc and gained 8ac in AUD. The USD EMI closed the week at 1421usc/clean kg.
Click here to access AWI's Wool Weekly Market Report (PDF 361 KB)