AWEX EMI fall by 15¢

10 Nov '08

4 min read

The Australian wool market finished 2.4% lower, on average, at sales in Newcastle, Melbourne and Fremantle this week.

The AWEX EMI fell by 15¢ (-2.0%), ending the week at 723¢/kg. This reflected falls of 11¢ (-1.4%) in the North and 19¢ (-2.6%) in the South, with their corresponding Regional Indicators finishing the week at 749¢ and 702¢ clean, respectively. The Western Indicator fell by 22¢ (-3.1%), finishing the week at 693¢.

In a three day sale in Newcastle and a two day sale in Melbourne, the AWEX EMI fell by 7¢ on Tuesday, by 9¢ on Wednesday and rose by 1¢ on Thursday. The Western Indicator fell by 20¢ on Wednesday and by 2¢ on Thursday in a two day sale in Fremantle.

40,160 bales were on offer, compared with 40,485 bales last week, of which 19.0% were passed in, comprised of 13.5% in Newcastle, 18.7% in Melbourne and 27.3% in Fremantle. Pass-in rates for Merino fleece and skirtings were 23.0% and 10.3%, respectively. 8,260 bales (17.1%) were withdrawn prior to sale and re-offered bales made up 13.0% of this week's offering.

The US exchange rate fluctuated wildly again this week with the Reserve Bank lowering official interest rates by 0.75%, rather than the expected 0.5% and changes in commodity prices.

It was 0.34¢ lower on Monday (source RBA) when compared with Thursday of last week. It was then down by a further 1.71¢ on Tuesday, up by 2.38¢ on Wednesday and down by 1.52¢ on Thursday to close at 67.30¢, down 1.19¢ (-1.7%) since the last sale. The exchange rate against the Euro rose by 0.43 Euro cents (+0.8%) to close at 52.29 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI moved down by 18¢ (-3.6%) in US terms and by 5¢ (-1.3%) in Euro terms when compared with the previous sale.

The market finished on a firmer note on Thursday after moving downwards when sales opened in Newcastle on Tuesday and in Melbourne and Fremantle on Tuesday. Overall, there were falls over all micron ranges and types with the greatest changes in the AWEX MPGs seen in the 17.5, 18.0, 24.0, 25.0 and 26.0 micron categories.

However, the good quality offering in Newcastle saw prices of 48,000 paid for one lot of 12.5 micron wool and 39,000¢ for a 12.6 micron lot.

Falls in the AWEX Micron Price Guides (MPGs) for Merino wools varied from -0.4 to -7.1%; with the most around -2%. Average AWEX Micron Price Guides (MPGs) were down by 24¢ clean for 17.0 microns, by 71¢ for 17.5 microns, by 51¢ for 18.0 microns, by 14¢ for 18.5 microns, by 17¢ for 19.0 microns and by 19¢ for 19.5 microns. The 20.0 micron wool average MPG was down by 19¢ clean, 21.0 microns by 16¢, 22.0 microns by 13¢, 23.0 microns by 11¢, and 24.0 microns by 45¢.

Prices for Merino skirtings held up for the better types on offer in Newcastle, but eased in Melbourne and Fremantle. Fine and medium crossbred average MPGs were down by 4 to 9%, whereas coarse crossbred MPGs were down by 1 to 2%. Oddments were generally unchanged during the week.

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