Weekly Wool Prices

Week Ending July 13 (Week 02)

16 July 2012

The AWEX Regional Indicators finished 2.2% lower, on average, at sales in Sydney, Melbourne and Fremantle this week when the US exchange rate fell by 0.9%. The EMI was down by 2.4% in US currency.

These were the last sales prior to the mid-year three week break in sales.

The market finished on a flatter note going into the break, with the EMI easing in Australian and US currencies on both selling days. The inclusion of 3500 bales from Tasmania appeared to cushion the overall fall in prices in the south on Tuesday. 

Nineteen through to 20 micron wools were most affected on both days, with falls in their average AWEX MPGs in excess of 3% since the previous sale. Nevertheless, most growers were prepared to sell, particularly the skirtings types, which were in keener demand.

The differences in demand over the different micron ranges led to some unusual price differentials. The closing 22 MPGs were above, or equal to, the 20 and 21 MPGs in the North and the South and above the 21 MPG in the West on Thursday.

20 Micron MPG120712091216
21 Micron MPG121012121207
22 Micron MPG121012211211

When compared with last season, the EMI was 299¢ (-22.08%) less than in Week 02 last year. The WMI was 295¢ (-22.3%) less than in Week 02 last year.

In other countries, there were no sales in South Africa. In New Zealand, the Wool Services International crossbred Indicators were down by 3 to 5%.

Among other fibres, December Futures for cotton rose late in the week to close at 72.66 US¢ on Friday, up by 2.9% for the week.

Centre Last Sale Day-to-Day Changes (Week 02) Sale-to-Sale Change Closing Indicator Sale-to-Sale Changes
Week Indicator Tuesday Wednesday Thursday US ¢ Euro ¢
Eastern 011077No Sale-8-7-15 (-1.4%)1062-26+1
Northern 011089No Sale-11-9-20 (-1.8%)1069-31-3
Southern 011068No Sale-6-5-11 (-1.0%)1057-22+4
Western 521096No Sale-18-24-42 (-3.8%)1054-53-22

47,832 bales were on offer, compared with 32,526 bales last week (when only Sydney and Melbourne sold). 10.9% were passed in, comprised of 9.9% in Sydney, 8.3% in Melbourne and 17.6% in Fremantle. Pass-in rates for Merino fleece and skirtings were 13.7% and 6.8%, respectively.

42,629 bales were cleared to the trade.

Although, this week’s offering was well up on Week 01, the two sale total of 80,258 bales was 17,903 bales less (-18.2%) than in the same period last year when growers were taking advantage of the excellent prices before the start of the three week recess (see table below).

The US exchange rate eased during the week, as global economic news was generally flat. Financial analysts attributed Wednesday’s rise more to investors covering positions than to economic sentiment. The situation with the Euro was more positive for Australia, with the Australian exchange rate appreciating by 1.5% during the week. Our records indicate that Thursday’s closing value of 83.26 Euro cents was the highest since the creation of the Euro.

Exchange Rates
(Reserve Bank)
Last Sale Day-to-Day Changes Sale-to-Sale
Closing Value Season Min & Max
Monday Tuesday Wednesday Thursday Min Max
United States 102.67-0.77-0.14+0.38-0.44-0.97 (-0.9%)101.70101.7102.67
Euro 81.91+0.98-0.10+0.47-0.14+1.21 (+1.5%)83.1281.9183.12


Sale-to-Sale Changes in Average AWEX Merino Micron Price Guides (MPGs)
Micron 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 21.0 22.0 23.0 24.0
Since Last Sale:
Change ¢ +6-11-23-21-23-41-49-40-24-20-7+8
Change % +0.4%-0.8%-1.7%-1.6%-1.8%-3.2%-3.9%-3.2%-2.0%-1.6%-0.6%+0.7%
Since Start of the Season:
Change ¢ +6-11-23-21-23-41-49-40-24-20-7+8
Change % +0.4%-0.8%-1.7%-1.6%-1.8%-3.2%-3.9%-3.2%-2.0%-1.6%-0.6%+0.7%
Since Same Week Last Year:
Change ¢  -924-808-646-507-422-368-291-235-176-70+44
Change %  -39.3%-37.1%-33.0%-28.4%-25.4%-23.4%-19.6%-16.4%-12.7%-5.5%+4.0%

Demand for skirting types was quite good on Wednesday, particularly for the Tasmanian lots. Most prices were quoted as up on Wednesday and unchanged on Thursday.

Crossbred wool prices were virtually unchanged on both days.

Oddments were generally unchanged on Wednesday, but a bit mixed on Thursday.

Sale-to-Sale Changes in Other Average AWEX Price Guides
Micron 25.0 26.0 28.0 30.0 32.0 MC#
Since Last Sale:
Change ¢ 0+14+10+10
Change % 0.0%+1.5%+0.2%0.0%+0.2%0.0%
Since Start of the Season:
Change ¢ 0+14+10+10
Change % 0.0%+1.5%+0.2%0.0%+0.2%0.0%
Since Same Week Last Year:
Change ¢ +151+83-49-28-72-193
Change % +16.8%+9.7%-7.2%-4.6%-12.7%-24.3%

# Average Merino Cardings Price Guide

Buyers for China were dominant this week, followed by strong support from buyers for Europe and India.

Highlights from the Australian Bureau of Statistics export data for May for the top five export destinations and three other key destinations follow.

Country % Share of Australia’s Wool Exports by Weight of Wool Shipped Year-on-Year % Change in Wool Exports
May 2012 July - May This Season July - May Last Season
China 77.2%75.7%74.6%-8.4%
India 7.8%6.7%7.6%-20.3%
Italy 2.5%4.9%5.3%-16.2%
Czech Republic 4.4%4.0%4.0%-10.0%
Taiwan 2.0%2.3%2.5%-16.4%
Korea 1.1%1.4%1.1%13.2%
Malaysia 0.7%1.0%0.7%27.9%
Thailand # 0.0%0.2%1.1%-81.6%
# Affected by Bangkok floods in October 2011 Change all Countries -9.8%

Sales will be in recess next week and resume in the week commencing 6 August.

Sales are in recess in South Africa until 15 August.

Released by: © AWIS 2012 (for permission to reprint, in part or whole, please contact AWIS)