AWIS Wool market review

25 May '07

4 min read

In another strong week with a slightly smaller offering and a 0.4% drop in the US exchange rate, the Australian wool market finished 2.5% higher, on average, at sales in Sydney, Melbourne and Fremantle this week.

The AWEX EMI increased by 28¢ (+2.9%), ending the week at 1,008¢/kg clean. This reflected increases of 26¢ (+2.6%) in the North and 31¢ (+3.2%) in the South, with their corresponding Regional Indicators finishing the week at 1,036¢ and 985¢ clean respectively.

The Western Indicator rose by 18¢ (+1.8%), finishing the week at 1,003¢/kg clean. All four Indicators are at season peaks; and it is the first time that the EMI has been above 1,000¢ since the last week before Easter in April 2003.

When compared with the start of the upward movement of the market in October, the EMI and the Northern, Southern and Western Indicators are now up by 267¢ (36.0%), 270¢ (35.2%), 265¢ (36.8%) and 286¢ (39.9%), respectively. 19 to 23 micron average AWEX Micron Price Guides (MPGs) are up by 304¢ to 323¢ clean over the period and by 236¢ for 24 micron wools. At the fine end, the changes are 213¢ for 17 micron wool, 264¢ for 17.5, 268¢ for 18 and 294¢ for 18.5 micron wool.

48,789 bales were on offer, compared with 52,262 last week, of which 4.0% were passed in, comprised of 1.8% in Sydney, 2.1% in Melbourne and 8.6% in Fremantle. Pass in rates for Merino fleece and skirtings were 3.4% and 3.9% respectively.

The higher value for Fremantle was influenced by a pass-in rate of 13.5% yesterday. 975 bales (2.0%) were withdrawn prior to sale and re-offered wools made up 9.8% of this week's offering.

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