Home / Knowledge / News / Textiles / Wool market drops
Wool market drops
17
Oct '11
The AWEX Regional Indicators finished 0.4% lower, on average, at sales in Sydney, Melbourne and Fremantle this week when the US exchange rate rose by 5.8%.

Although the market finished on a softer note, it was more settled over this week and last, with the EMI down by 2.8% (+1.1% in US), compared with 10.0% fall (-18.2% in US) over the previous four sales.

The market remains at historically high levels; and the EMI is 27.9% about the same week last year.

Growers again demonstrated a resistance to sell at this level, with high pass-in rates in all centres, apart from the North on Wednesday when it fell to 6.8%.

40,969 bales were on offer, compared with 42,836 bales last week. 14.9% were passed in, comprised of 8.9% in Sydney, 15.6% in Melbourne and 20.8% in Fremantle. Pass-in rates for Merino fleece and skirtings were 20.3% and 6.9%, respectively. 34,861 bales were cleared to the trade.

Although there is continuing uncertainty in Europe, the more confident outlook expressed in the global financial community last Thursday continued into this week, resulting in a return of currency to Australia and a sharp rise in the US exchange rate. The US exchange rate rose by 5.8% in the week and moved above 100¢ on Thursday for the first time in the last three weeks. Financial analysts attributed Thursday's rise of 2.84¢ to the good employment data released in Australia that day.

There was greater optimism going into this week's market, following the strong close on the previous Thursday, a more confident global economic outlook and overseas interest since then. This was realised when the market opened on Wednesday, particularly around the 19 to 22 micron area. The market then lost some of its momentum. But this did not prevent the AWEX EMI and the three Regional Indicators all finishing up by 2¢ at the end of the day. The market continued on a softer note on Thursday; more so in the South and the West than in the North when the US exchange rate rose by 2.8%.

It is difficult to separate the influence of market forces and exchange rates this week. Although the EMI finished down by 4¢ in Australian currency, the equivalent change in US currency was a gain of 61¢ (including 27¢ on Thursday), due to the large increase of 5.58¢ in the US exchange rate.

It was a better week for the fine end of the market, with relatively small changes in the individual AWEX MPGs. Fine wool growers will be watching the market even more closely next week when 14,600 bales are currently rostered for the second Newcastle sale of the season.

Skirtings had an overall good week, with a strong start on Wednesday. Prices held up in the North and the West on Thursday, but eased a little in some areas in the South.

Prices for crossbred types were generally down on both days, but continue to be the best performer in terms of market change since the start of the season.

Oddments were steady all week, with good demand for locks pushing their prices up. The average AWEX Merino Cardings Price Guide was virtually unchanged. Buyers for China were dominant followed by buyers for India, Europe and Korea.


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search