Australian wool auctions continued this week to a softer trend locally, but movements were largely reflective of the appreciation of the Australian dollar against the US
dollar. Demand remains reasonably strong in most sectors and sporadic new business is available but price sensitivity expressed in USD per kg is the ruling factor at present. The EMI (Eastern Market Indicator) lost 15ac/clean kg to close at 1265ac/clean kg. Indicative of stable demand is the EMI when expressed in usc/kg as it strengthened 5usc to 907usc/kg. Current prices are 15% higher than at the same time period last year in AUD terms, whilst in USD, 6% higher.