The US exchange rate (RBA) was 0.02¢ higher on Monday when compared with Thursday of last week. It rose by 0.60¢ on Tuesday, fell by 0.14¢ on Wednesday and rose by 0.30¢ on Thursday, to close at 83.23¢, up 0.78¢ (+0.9%) since the last sale. The exchange rate against the Euro rose by 0.85 Euro cents (+1.4%) to close at 61.44 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI increased by 26¢ (+3.3%) in US terms and by 22¢ (+3.8%) in Euro terms when compared with the previous sale.
The changes in the EMI in US and Euro currencies since mid October are now 247¢ US (+44.6%) and 148 Euro cents (+33.7%). The EMI in US terms (801¢) is now 106¢ above the 2002/03 peak of 695¢.
In a two day sale, the AWEX EMI rose by 8¢ on Wednesday and by 14¢ on Thursday. The Western Indicator rose by 11¢ on Wednesday and by 12¢ on Thursday.
It was a very solid market in which 18.5 to 23 micron average MPGs rose by 28 to 32¢ clean, while increases for finer wools were more subdued ranging from 6¢ (16.5 microns) to 18¢ (17.5 microns). Skirtings were again in very strong demand, and oddments were keenly sought with the average Merino Cardings MPG up 9¢. Crossbred prices continued to lift during the week, particularly among the fine crossbreds.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 53,534 bales are currently rostered for sale. Current estimates for the following three sales vary from 30,700 to 46,400, a fall of 15.1%over the four sale period when compared with last year. Supply is becoming a critical issue, with the forecast offerings slipping further behind last year. It appears to having an increasing effect on the market as the season progresses, even allowing for the strong demand signals reported by The Woolmark Company.
China remains as the dominant buyer. The latest Australian Bureau of Statistics data show that 71.1% of Australia's wool exports in March went to China, taking the progressive figure since July to 65.1%. There was no sale in South Africa this week.
Australian Wool Innovation Limited
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
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