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Western Wool Indicator continues to fall

09
Apr '08
The Australian wool market finished 0.3% higher, on average, over the two week break at sales in Sydney, Melbourne and Fremantle this week.

The AWEX EMI rose by 6¢ (+0.6%), ending the week at 967¢/kg. This reflected increases of 2¢ (+0.2%) in the North and 10¢ (+1.1%) in the South, with their corresponding Regional Indicators finishing the week at 1005¢ and 935¢ clean, respectively.

The Western Indicator fell by 5¢ (-0.5%), finishing the week at 951¢. The difference in the change in the Western Indicator can be attributed to an absence of fine wool types in that region's Indicator. The greatest gains in the East occurred at the fine end.

In a three day sale in Sydney and Melbourne, the AWEX EMI rose by 3¢ on Tuesday, by 5¢ on Wednesday and fell by 2¢ on Thursday. The Western Indicator fell by 4¢ on Wednesday and by 1¢ on Thursday in a two day sale in Fremantle.

65,752 bales were on offer, compared with 44,675 bales at the last sale (when only Sydney and Melbourne sold), of which 14.2% were passed in, comprised of 9.3% in Sydney, 9.0% in Melbourne and 24.2% in Fremantle. Pass-in rates for Merino fleece and skirtings were 12.7% and 21.0%, respectively. 2,053 bales (3.0%) were withdrawn prior to sale and re-offered bales made up 11.1% of this week's offering.

The US exchange rate (source RBA) was 1.45¢ lower on Monday when compared with Wednesday of the last sale. It was down by a further 0.78¢ on Tuesday and by 0.23¢ on Wednesday before gaining 0.62¢ on Thursday to close at 91.41¢, down 1.84¢ (-2.0%) since the last sale.


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