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AWIS wool market review

Jan '07
In a reversal of pattern in the first two sales in January, the Australian Wool market finished 3.9% lower, on average, at sales in Sydney and Melbourne.

The AWEX EMI decreased by 36¢ (-3.7%), ending the week at 926¢/kg clean. This reflected decreases of 44¢ (4.4%) in the North and 31¢ (-3.3%) in the South, with their corresponding Regional Indicators finishing the week at 953¢ and 903¢ clean respectively. There being no sale in Fremantle, the Western Indicator remained at 976¢/kg clean.

Although the market eased this week, prices were still well above those at the start of January. The Market Indicators also remain well above their levels of 15 weeks ago, with the EMI and the Northern and Southern Indicators being up by 185¢ (25.0%), 187¢ (24.4%) and 183¢ (25.4%), respectively.

19 to 23 average AWEX Micron Price Guides are still up by 212 to 249¢ over the period and by 163¢ for 24 micron wools. At the fine end, the changes are 142¢ for 17 micron wool, 157¢ for 17.5, 184¢ for 18 and 206¢ for 18.5 micron wool.

45,663 bales were on offer (compared with 68,917 last week, when all three centres sold), of which 20.8% were passed in, comprised of 18.9% in Sydney and 22.3% in Melbourne.

Pass in rates for Merino fleece and skirtings were 28.1% and 8.1% respectively. 766 bales (1.6%) were withdrawn prior to sale and re-offered wools made up 11.4% of this week's offering.

As seen in the past, when the market is at these levels, the pass-in rate is more related to the downward change in the market than to the level of the market. The pass-in rate was 2.8% two weeks ago when the EMI was 11¢ less than this week.

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