While the market has eased by 3.6% this week, the EMI at 1007¢ is still 2¢ above the pre-Christmas peak of 1005¢, all four Region Indicators were at a season high last week and when looked at in US terms, the EMI is 200¢ above the 2002/03 peak of 695¢.
It was generally accepted that after a period of continuing rises in all weeks, except one, since early November that there would be a correction in the market at some time. It occurred this week with falls across all micron ranges and wool types, although the better types with good strength values and low mid-breaks held on well.
The medium and broader Merino wools were most affected on Wednesday and were joined by the finer wools on Thursday. AWEX Micron Price Guides (MPGs) for the week were down by 35¢ clean for 17.0 microns, by 40¢ for 17.5, by 45¢ for 18.0, by 44¢ for 18.5, by 39¢ for 19.0 and by 45¢ for 19.5 microns. 20.0 micron wool was down by 53¢, 21.0 microns by 47¢, 22.0 microns by 36¢, 23.0 microns by 33¢ and 24.0 microns by 37¢.
Skirtings followed the fleece types, but attracted greater willingness to sell by vendors with a pas-in rate of 9.2% compared with 25.8% for fleece wools. Skirtings have sold at favourable prices for some time. Oddments eased also with the average Merino Cardings MPG down by 7¢. Crossbreds were similarly affected, with their average MPGs down 6 to 10¢ at the find end, increasing to around 15¢ at the coarse end.
There was a good spread of competition with buyers for China dominant.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 68,006 bales are currently rostered for sale. Present estimates for the following three sales vary from 49,100 to 55,700 bales, a decrease of 12.9% over the four sale period when compared with last year.
In South African sales, the Cape Wools Indicator was down by 0.4% since last week against a 1.2% depreciation of the Rand against the US Dollar and a 2.5% depreciation against the Euro.
Australian Wool Innovation Limited
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
