AWEX EMI up by 1.3%

05 Dec '08

4 min read

The Australian wool market finished 1.0% higher, on average, at sales in Sydney, Melbourne and Fremantle this week.

The AWEX EMI rose by 10¢ (+1.3%), ending the week at 789¢/kg. This reflected rises of 11¢ (+1.4%) in the North and 9¢ (+1.2%) in the South, with their corresponding Regional Indicators finishing the week at 818¢ and 765¢ clean, respectively. The Western Indicator rose by 4¢ (+0.5%), finishing the week at 749¢.

In a two day sale in Sydney and Melbourne, the AWEX EMI rose by 4¢ on Wednesday and by 6¢ on Thursday. The Western Indicator rose by 2¢ on Wednesday and by 2¢ on Thursday in a two day sale in Fremantle.

48,339 bales were on offer, compared with 43,244 bales last week, of which 11.0% were passed in, comprised of 8.4% in Sydney, 11.7% in Melbourne and 13.4% in Fremantle. Pass-in rates for Merino fleece and skirtings were 10.9% and 9.6%, respectively. 2,570 bales (5.0%) were withdrawn prior to sale and re-offered bales made up 15.4% of this week's offering.

The US exchange rate (source RBA) was 0.22¢ lower on Monday when compared with Thursday of last week. It was then down by a further 0.73¢ on Tuesday, up by 0.46¢ on Wednesday and down by 0.12¢ on Thursday to close at 64.42¢, down 0.61¢ (-0.9%) since the last sale. The exchange rate against the Euro rose by 0.51 Euro cents (+1.0%) to close at 50.84 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI moved up by 1¢ (+0.2%) in US terms and by 9¢ (+2.3%) in Euro terms when compared with the previous sale.

It was a good week for sellers, with the market recovering last week's losses, although assisted by fall in the US exchange rate. The closing AWEX EMI was 66¢ above the season's low point of four weeks ago. Prices in the North did very well considering the sale there was following a Newcastle sale the week before There was very strong demand for 19.0 and 19.5 micron wools whose average MPGs rose by 21¢ and 41¢ respectively.

Changes in the AWEX Micron Price Guides (MPGs) for Merino wools varied from +0.3% (16.5 microns) to +2.7% (19.5 microns) and +2.9% (23.0 microns), with the changes in other micron ranges mostly around 1.0%. Average AWEX Micron Price Guides (MPGs) were up by 5¢ clean for 16.5 microns, by 9¢ for 17.0 microns, by 14¢ for 17.5 microns, by 5¢ for 18.0 microns, by 9¢ for 18.5 microns, by 14¢ for 19.0 microns and by 25¢ for 19.5 microns. The 20.0 micron wool average MPG was up by 8¢ clean, 21.0 microns by 10¢, 22.0 microns by 13¢, 23.0 microns by 21¢, and 24.0 microns by 6¢.

Merino skirtings continued to be in strong demand with prices up on both days in the North and the South, but easing in the West on Wednesday. Prices for fine and medium crossbreds moved slightly upwards and were unchanged at the coarse end. It was a mixed week for oddments with price gains in the North, but significant falls in the South on Tuesday. Prices were steadier on Thursday, but the AWEX Merino Cardings average MPG finished down 5¢ (-1.1%) for the week.

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