AWEX wool indicator closes 0.9% down previous week

Financial analysts have attributed the ongoing falls in exchanges rates to a softer economy in China and doubts now about the prospects of another “quantitative easing” (printing money) in the United States.

Skirtings generally had quite a good week that was reflected in a low pass-in rate of 5.6%.  It was well below the 15.5% pass-in rate for fleece wools.  It was another good week for crossbred wools, with rises in all theiraverage AWEX Micron Price Guide (MPGs).  They have generally done better than Merino wools since the start of the season.  It was a good week for the oddments also.

Buyers for China were dominant this week, followed by strong support from buyers for Italy (in Newcastle) and India.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 40,509 bales are currently rostered for sale.  Present estimates for the following two sales (Weeks 11 and 12) are 37,270 and 47,200 bales, respectively; a decrease of 3.6% over the three sale period when compared with last year.

The New Zealand Merino Company is rostered to offer 500 bales in Melbourne next week and 1,000 bales in Week 12. In South African sales, the Cape Wools Indicator was up by 1.2% since last sale against a 2.7% depreciation of the Rand against the US Dollar and a 4.7% depreciation against the Euro.  7,694 bales were on offer.

Australian Wool Industries Secretariat Inc (AWIS)