Aussie wool prices down 1.9% last week

The wool market displayed more of the volatility seen since the resumption of sales after the Easter break, with the EMI up slightly on Tuesday, but falling on Wednesday and the WMI down on both days. All average AWEX MPGs were down for the week.

Not surprisingly, the pass-in rate lifted sharply on Thursday, when the national figure was 20.8% compared with 11.3% on Wednesday. The West continued to experience a high “withdrawn-before-sale rate” (18.5%) and pass-in rate (33.2%).

The overall year-to-year changes in the progressive offering will stay in positive territory if the expected offerings for the next three weeks are achieved.

The US exchange rate experienced further volatility during the week, but finished on a slightly upward note at the end of the week.

In other countries, the Cape Wools Indicator in South Africa was down by 0.4% since last week against a 0.7% depreciation of the Rand against the US Dollar and a 0.6% appreciation against the Euro. In New Zealand, Wool Services International quoted fine crossbred (35 microns) as 1% dearer; and early shorn and second shear fine crossbred fleece as 3% up to 7% dearer, according to length.

Among other fibres, cotton Futures have fallen during the week. July Futures were down by 3.8% to close at 84.25 US¢; and December Futures were down by 3.2% to 83.28 US¢ on Friday.

Skirtings prices started on a firm note in the East on Tuesday, but were down in the West. Wednesday’s sale saw falls across all centres. Crossbred prices were relatively stable during the week, particularly when compared with Merino prices.

Oddments fared fairly well on Tuesday, but were more mixed on Wednesday when some, but not all, types resisted the overall fall in the market

Buyers for China were dominant, with support from buyers for, India and Korea. Buyers for Europe were noticeably quitter again this week.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 44,847 bales are currently rostered for sale. Present estimates for the following two sales (Weeks 45 and 46) are 43,870 and 41,800 bales, respectively; an increase of 13.2% over the three sale period when compared with last year.

Australian Wool Industries Secretariat Inc