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| Wool market review - 14th March 2008 |
The Australian wool market finished 0.7% lower, on average, at sales in Sydney, Melbourne and Fremantle this week.
The AWEX EMI fell by 6¢ (-0.6%), ending the week at 966¢/kg. This reflected an unchanged Indicator in the North and a decrease of 10¢ (-1.1%) in the South, with their corresponding Regional Indicators finishing the week at 1011¢ and 929¢ clean, respectively. The Western Indicator fell by 10¢ (-1.0%), finishing the week at 956¢.
In a two day sale in Sydney and Melbourne, the AWEX EMI rose by 2¢ on Wednesday and fell by 8¢ on Thursday. The Western Indicator fell by 3¢ on Wednesday and by 7¢ on Thursday in a two day sale in Fremantle.
53,698 bales were on offer, compared with 50,785 bales last week, of which 13.9% were passed in, comprised of 5.5% in Sydney, 13.6% in Melbourne and 21.9% in Fremantle. Pass-in rates for Merino fleece and skirtings were 13.1% and 15.5%, respectively. 2,141 bales (3.8%) were withdrawn prior to sale and re-offered bales made up 13.7% of this week's offering.
The US exchange rate (source RBA) was 0.72¢ lower on Monday when compared with Thursday of last week. It was down by a further 0.83¢ on Tuesday, up by 1.18¢ on Wednesday and by 0.42¢ on Thursday to close at 93.57¢, up 0.05¢ (+0.1%) since the last sale. The exchange rate against the Euro fell by 1.13 Euro cents (-1.8%) to close at 60.09 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI decreased by 5¢ (-0.6%) in US terms and by 15¢ (-2.5%) in Euro terms when compared with the previous sale.
Although the overall market was down this week, there were increases at the fine end, particularly in the North on Wednesday, when most of the available fine wools in that region were offered for sale. The Northern Micron Price Guides (MPGs) for 16.5, 17.0 and 17.5.5 microns rose by 28¢, 36¢ and 32¢ clean, respectively on the day. Medium and coarser wools eased over the two days, particularly in the South on Thursday when some lower yielding wools from South Australia were on offer. Stronger wools with low mid-breaks were in strong demand.
On a week to week basis, the average AWEX Micron Price Guides (MPGs) were up by 16¢ clean for 16.5 microns, by 18¢ for 17.0 microns, by 16¢ for 17.5 microns and by 6¢ for 18.0 microns, down by 2¢ for 18.5 microns, by 1¢ for 19.0 microns and was unchanged for 19.5 microns. The 20.0 micron wool average MPG was down by 13¢ clean, 21.0 microns by 21¢, 22.0 microns by 15¢, 23.0 microns by 16¢, and 24.0 microns by 13¢. Better skirtings types were generally firm while others eased. Crossbreds were general up for the week, with changes in their average MPGs ranging from 0¢ to +5¢. Oddments came under heavy pressure with falls across all types on both days. The average AWEX Merino Cardings MPG fell by 26¢.
Buyers for China were dominant with good support from those buying for India.
Sales will in Sydney and Melbourne next week, when 47,003 bales are currently rostered for sale. Present estimates for the following two sales vary from to 49,200 to 64,229 bales, an increase of 6.4% over the three sale period when compared with last year.
In South African sales, the Cape Wools Indicator was down by 0.6% since last week against a 0.5% appreciation of the Rand against the US Dollar and a 1.0% depreciation against the Euro.
ABS export statistics for the July to January period were released during the week. Australia exported 23 mkg of wool in January valued at $159 million, taking the year-to-date figures to 210 mkg (-13.6%) and $1,417 million (+3.5%). 61.9% of the total exports went to China.
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