AWIS wool market review - March 16, 2007

16 Mar '07

4 min read

The exchange rate against the Euro increased by 0.45 Euro cents (+0.8%) to close at 59.44 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI increased by 23¢ (+3.1%) in US terms and by 16¢ (+2.9%) in Euro terms when compared with the previous sale.

The changes in the EMI in US and Euro currencies since mid October are now 202¢ US (36.5%) and 130 Euro cents (29.4%). In a two day sale in Sydney and Melbourne, the AWEX EMI increased by 21¢ on Wednesday and decreased by 2¢ on Thursday. The Western Indicator increased by 21¢ on Wednesday and decreased by 7¢ on Thursday.

In another good week of strong demand, there were significant increases over all Merino micron ranges on Wednesday taking most their average Micron Price Guides to season-best, or near season-best, levels before a slight settling in the market yesterday.

It was also a week in which the 16.5 to 18.5 micron wools had bigger gains than the medium wools. Skirting types continued to be in strong demand over both days, with increases of 10 to 30¢ reported. The only easing occurred in Fremantle yesterday among some broader lots.

Oddments were also in keen demand, with rises on both days. Crossbreds had a mixed day on Wednesday before closing down slightly for the week, except for 26 micron wool which lifted on both days.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 63,279 bales are currently rostered for sale. Current estimates for the following two weeks are expected to fall back, ranging between 40,300 (Sydney and Melbourne only) and 57,298, a decrease of 17.7% over the same period last year when sale volumes were increasing.

In South Africa, the Cape Wools Indicator rose by 34.8% against a 1.4% depreciation of the US$ exchange rate and a 1.9% depreciation of the Euro exchange rate. The National Wool Production Forecasting Committee meets next Thursday.

Australian Wool Innovation

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