AWEX EMI fall by 5¢ (-0.5%)

19 Feb '08

4 min read

The exchange rate against the Euro rose by 0.90 Euro cents (+1.5%) to close at 61.96 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI increased by 5¢ (+0.6%) in US terms and by 6¢ (+1.0%) in Euro terms when compared with the previous sale.

In an unusual sale week with a split/Launceston/Melbourne sale and a predominantly non-fleece offering on Tuesday when only the South was selling. The Launceston sale is also typified by the offering of its best wools on the second day.

The offering this year was almost exclusively 19.5 microns and finer with most wools being in the 16.5 to 18.5 diameter range. AWEX Micron Price Guides (MPGs) for 16.5, 17.0, 17.5, 18.0 and 18.5 microns rose by 27¢, 27¢, 70¢, 51¢ and 36¢ respectively in Launceston on Wednesday after all fell on an offering of lesser types the day before.

In more general comments about the market, the market finished on an upward note despite the appreciation in currency. and there continued to be a marked differentiation between the prices paid for wools with better strength values and lower mid-breaks and those with lower strength values and high mid-breaks.

Average MPGs for 19.5to 21.0 microns were down by 12 to 21¢ for the week while 22.0 to 24.0 micron MPGs were relatively unchanged. Skirtings mostly held up during the week, apart from an easing in Sydney on Wednesday.

Oddments generally finished the week around last week's closing levels. Fine crossbreds were up slightly with medium and coarse wools unchanged.

Buyers for Italy were dominant on the first two days when Launceston sold with buyers for China dominant on Thursday.

Sales will in Sydney, Melbourne and Fremantle next week, when 68,557 bales are currently rostered for sale. Present estimates for the following three sales vary from 50,700 to 50,700 bales, a decrease of 1.6% over the four sale period when compared with last year. The New Zealand Merino Company will also offer 3,924 bales in Melbourne next week, in its first offering since the Christmas break.

Offerings are going through a period of varying and suddenly changing numbers as sellers respond to their perceptions of the market. This is their right. But, it is disruptive to buyers and often has negative effects on the market.

In South African sales, the Cape Wools Indicator was up by 5.1% since last week against a further 0.8% depreciation of the Rand against the US Dollar, after last week's big fall, and a 0.4% depreciation against the Euro.

Australian Wool Innovation Limited

More Australian Wool Innovation Limited News... More Textiles News - Australia...