Home / Knowledge / News / Textiles / Wool market finishes 8.5% lower
Wool market finishes 8.5% lower
24
Oct '08
The Australian wool market finished 8.5% lower, on average, at sales in Sydney, Melbourne and Fremantle this week.

The AWEX EMI fell by 75¢ (-8.9%), ending the week at 764¢/kg. This reflected falls of 88¢ (-9.9%) in the North and 64¢ (-8.0%) in the South, with their corresponding Regional Indicators finishing the week at 797¢ and 736¢ clean, respectively. The Western Indicator fell by 61¢ (-7.7%), finishing the week at 729¢.

In a three day sale in Sydney and Melbourne, the AWEX EMI fell by 62¢ on Tuesday, by 6¢ on Wednesday and by 7¢ on Thursday. The Western Indicator fell by 53¢ on Wednesday and by 8¢ on Thursday in a two day sale in Fremantle.

57,149 bales were on offer, compared with 55,911 bales last week, of which 33.3% were passed in, comprised of 29.6% in Sydney, 35.5% in Melbourne and 34.6% in Fremantle. Pass-in rates for Merino fleece and skirtings were 43.2% and 26.4%, respectively. 10,239 bales (15.2%) were withdrawn prior to sale and re-offered bales made up 9.6% of this week's offering.

The New Zealand Merino Company also offered 2,810 bales in Melbourne on Wednesday of which 51.6% were passed in. 90 bales (3.2%) were withdrawn prior to sale and 0.9% of the bales were re-offers.

The US exchange rate (source RBA) was 3.23¢ higher on Monday when compared with Thursday of last week. It was then down by 0.55¢ on Tuesday, by 2.87¢ on Wednesday and up by 0.01¢ on Thursday to close at 66.63¢, down 0.18¢ (-0.3%) since the last sale. The exchange rate against the Euro rose by 2.09 Euro cents (+4.2%) to close at 52.05 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI moved down by 52¢ (-9.3%) in US terms and by 21¢ (-5.0%) in Euro terms when compared with the previous sale.

The soft demand in the current financial crisis and weak competition continued this week with falls across all micron ranges and wool types. It was not helped by the announcement last Friday that the expected offering had increased by 9,600 bales during the week.

History shows that this invariably contributes to a fall in the market, which in turn leads to a higher pass-in rate with probably no net change in the quantity of wool sold. A lose-lose situation. Other factors in play during the week included the increase of 2.7¢ in the US exchange rate between last week's close and the start of this week's selling and the weaker demand for fine wools after last week's Newcastle sale. All of these factors contributed to the large fall in the market in Australian currency on Tuesday, particularly among the superfine wools on offer in Sydney. The fall of 62¢ in the AWEX EMI was 21¢ when converted into US currency.

Falls in the AWEX Micron Price Guides (MPGs) for Merino wools varied from -7% to -11%; being down by 107¢ clean for 16.5 microns, by 132¢ for 17.0 microns, by 136¢ for 17.5 microns, by 110¢ for 18.0 microns, by 112¢ for 18.5 microns, by 98¢ for 19.0 microns and by 72¢ for19.5 microns. The 20.0 micron wool average MPG was down by 80¢ clean, 21.0 microns by 71¢, 22.0 microns by 63¢, 23.0 microns by 52¢, and 24.0 microns by 64¢.


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Liz Manning

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

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

December 2017

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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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