Home / Knowledge / News / Textiles / Australian Wool Exchange EMI gains 1.2% this week

Australian Wool Exchange EMI gains 1.2% this week

15
Nov '19
Pic: Shutterstock
Pic: Shutterstock
Australian auction sales produced dearer results this week across the majority of wools on offer. The AWEX (Australian Wool Exchange) EMI (Eastern market indicator) gained 19ac or 1.2 per cent this week to close selling at 1574ac clean/kg. However, a weaker AUD (Australian dollar) against the US dollar eliminated almost entirely the impact of the AUD gains.
 
The USD EMI gained just 2usc or 0.2 per cent to close at 1070usc clean/kg with an unchanged result the net effect for those overseas manufacturers using USD for buying on an indicator only assessment. Isolating the merino fleece types though, there was a general 1.2 per cent appreciation in the USD values.
 
During the sales week 20 of the current wool marketing season, merino fleece of all qualities were the recipient of the largest of rises. Gains of 30 to 40ac were commonplace in a very competitive environment which had the main Australian trading houses leading the buyers lists. Chinese indent buyers and a few of the top makers gave strong support but their purchasing activity dropped off on the final day somewhat as the first day saw levels rise above their reach and that of their clients ability to convert, the Australian Wool Innovation (AWI) Limited said in its weekly report.
 
"The oscillating wool market continues unabated. Recently we have seen the fortnightly changes reduced to weekly movements and now day-to-day appears to be becoming the norm. Since the first week of September 2019, the market has behaved in this micro cyclical manner and if you happened to be selling on the "good" week or day, 50ac differentials in clip returns could have resulted. This highlights the higher than normal passed in percentages that have featured at auctions through the first quarter of this season," the AWI's 'Wool Market' report said.
 
"Most of this volatility is stemming from the very short supply chain we are operating to at present with prompt demand being satisfied by hand to mouth buying and processing. Six to eight weeks from auction to shelf is now the general routine for wool products from auction sale in Australia to on shelf at retail for most of China delivery," the report added.
 
The upcoming three week break in sales without access to any significant volume of wool, may see some market behaviour change. Anticipating needs for deliveries post the Chinese New Year break in late January may prove advantageous. Normal patterns show that shearing slows significantly for a few weeks over the Christmas/New Year period. On top of that, volumes are already looking like being at least 10 per cent lower this season so supply factors will have a larger chance to force itself on price.
 
A large offering of more than 40,000 bales are set to go to auction next week.
 

Fibre2Fashion News Desk (RKS)


Must ReadView All

Pic: Shutterstock

Textiles | On 6th Dec 2019

Global fibre production at an all-time high: report

Global fibre production has doubled in the last 20 years, reaching an ...

Pic: Shutterstock

Textiles | On 6th Dec 2019

Many firms lack contingency plans for trade war: survey

More than a quarter of multinational firms have not prepared...

Pic: Shutterstock

Textiles | On 6th Dec 2019

Vietnam strives to achieve textile-garment export target

Vietnam's domestic textile and garment industry is striving to reach...

Interviews View All

Sonia Agarwal, Whitenife

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Priyanka Gandhi,

Priyanka Gandhi

Established in 2016, Surat-based Shree Ganesh Yarns is a manufacturer of...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

Leave your Comments


December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search