News Flash

AWIS wool market down 0.4% at the start of the season

10 Jul '06

3 min read

The US exchange rate was 1.39¢ higher on Monday when compared with the previous Thursday. It then increased 0.19¢ on Tuesday, by 0.23¢ on Wednesday and decreased by 0.44¢ on Thursday to close at 74.21¢, up 1.37¢ (+1.9 percent) since the last sale. The exchange rate against the Euro increased by 0.24 Euro cents (+0.4 percent) to close at 58.28 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI rose by 10¢ in US terms and by 2¢ in Euro terms when compared with the previous sale.

Most of the increase in the US exchange rate occurred last Friday, when it lifted almost 1.5¢ from a low base (by comparison with recent week's data) and confirmation of the rise in US interest rates.

In a three day sale in Sydney and a two day sale in Melbourne, the AWEX EMI decreased 2¢ on Tuesday, remained the same on Wednesday, and increased by 2¢ on Thursday. The Western Indicator decreased by 6¢ on Wednesday and by 2¢ on Thursday.

The week finished on a firm note after a slight easing at the beginning of the week. As usual, better style and strong fleece types were in good demand, but they were outnumbered by lesser wools. Gains of up to 15¢ in the Indicator value were seen in the 18 to 22 micron ranges. Skirting types were generally unchanged during the week, crossbreds moved upwards yesterday after easing on Wednesday and oddments weakened on Wednesday, with a recovery in some types yesterday.

Sales will be held in Melbourne next week, while Sydney and Fremantle are in recess, when 25,281 bales are currently rostered for sale.

The results of National Wool Production Forecasting Committee will be available later today. Little change is expected in last year's forecast, while there is general expectation that this year's forecast will be wound back, given the poorer seasonal conditions.

Australian Wool Innovation Limited

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