AWEX regional indicator closes 0.9% higher last week

02 Jul '12

4 min read

The US exchange rate fell sharply after last Thursday due to subdued manufacturing data out of China and Moody’s downgrading of the credit rating for 13 major global banks. There were further concerns in Europe this week when Cyprus sought a bailout for its second largest bank. Better economic news week later this week led to a rise in confidence and the US exchange rate on Wednesday and Thursday.

It was a very good week for skirtings types also, with prices moving up on both days. Pass-in rates followed the downward trend of other types and at 6.7% were well below those of recent weeks. Crossbred wools Micron Price Guides (MPGs) all finished in positive territory.

Oddments also had another better week. The average AWEX Merino Cardings Indicator was up by 0.8%.

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

Sales will be held in Sydney and Melbourne next week in the first sale of the new season, when 33,243 bales are currently rostered for sale. The present estimate for the following sale (Week 02) is 41,057 bales; a decrease of 24.4% over the two sale period when compared with last year.

Sales are in recess in South Africa until 15 August.

Australian Wool Industries Secretariat Inc (AWIS)

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