AWEX EMI up by 23¢

27 Apr '09

4 min read

The Australian wool market finished 2.9% higher, on average, at sales in Sydney, Melbourne and Fremantle this week when sales resumed after the Easter break.

The AWEX EMI rose by 23¢ (+3.0%), ending the week at 790¢/kg. This reflected rises of 25¢ (+3.2%) in the North and 21¢ (+2.8%) in the South, with their corresponding Regional Indicators finishing the week at 812¢ and 771¢ clean, respectively. It was the first time the Northern Market Indicator had been over 800¢ since mid-October last year. The Western Indicator rose by 19¢ (+2.6%), finishing the week at 749¢.

In a three day sale in Melbourne and a two day sale in Sydney, the AWEX EMI rose by 3¢ on Tuesday, by 11¢ on Wednesday and by 9¢ on Thursday. The Western Indicator rose by 11¢ on Wednesday and by 8¢ on Thursday in a two day sale in Fremantle.

57,952 bales were on offer, compared with 46,080 bales at the last sale, of which 5.2% were passed in, comprised of 4.6% in Sydney, 3.6% in Melbourne and 8.5% in Fremantle. Pass-in rates for Merino fleece and skirtings were 6.2% and 2.8%, respectively. 1,914 bales (3.2%) were withdrawn prior to sale and re-offered bales made up 8.1% of this week's offering.

The US exchange rate (source RBA) was 1.29¢ higher on Monday when compared with Wednesday of the last sale. It was then down by 1.60¢ on Tuesday, up by 0.29¢ on Wednesday and by 0.31¢ on Thursday to close at 70.84¢, up 0.29¢ (+0.4%) since the last sale. The exchange rate against the Euro rose by 0.85 Euro cents (+1.6%) to close at 54.38 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI moved up by 19¢ (+3.5%) in US terms and by 19¢ (+4.6%) in Euro terms when compared with the previous sale.

It was another good week with the AWEX EMI finishing up across all micron ranges and wool types. It saw a continuation of the gains made in all currencies in the six weeks prior to Easter. The ultra fine end of the market made noticeable gains during the week. The strong performance of the market was reflected in the lowest pass-in rate for the season.

Changes in the Average AWEX Micron Price Guides (MPGs) for Merino wools varied from +1.1% (24.0 microns) to +4.3% (16.5 microns) and +4.6% (19.0 microns) with the greatest increases being from 16.5 to 20.0 microns. Average MPGs were up by 64¢ clean for 16.5 microns, by 43¢ for 17.0 microns, by 49¢ for 17.5 microns, by 29¢ for 18.0 microns, by 31¢ for 18.5 microns, by 46¢ for 19.0 microns and by 27¢ for 19.5 microns. The 20.0 micron wool average MPG was up by 28¢ clean, 21.0 microns by 21¢, 22.0 microns by 21¢, 23.0 microns by 19¢, and 24.0 microns by 8¢.

Merino skirtings, particularly the better ones, were in strong demand all week with gains on each day. The pass-in rate of 2.8% was the lowest for the season. Crossbred types also had a good week with price rises on each day. Fine crossbred average MPGs were up marginally, whereas medium and coarse crossbred average MPGs were up by 2.5%. Oddment prices were up on Tuesday and Wednesday before easing slightly on Thursday. The Merino Cardings average MPG was up by 2¢ for the week.

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