The changes in the EMI in US and Euro currencies since mid October are now 255¢ US (+46.0%) and 156 Euro cents (+35.3%). The lift in the US exchange rate from around 55¢ at the time the last period of high prices in 2002/03 means that EMI in US terms (809¢) is now 114¢ above the 2002/03 peak of 695¢, whereas the values in Australian and Euro currency are still below their 2002/03 peaks (see attached graph).
In a two day sale, the AWEX EMI rose by 10¢ on Wednesday and by 8¢ on Thursday. The Western Indicator rose by 6¢ on Wednesday and by 11¢ on Thursday.
It was a very good market, reflected by the low pass-in rates. Rises were seen over all wool types and micron ranges, with finer wools (17.5 to 19.5 microns) average Micron Price Guides (MPGs) up by 18 to 26¢ clean and doing better than the medium wools, where the gains in the average MPGs were around 15¢. High strength wools continued to attract good demand and higher prices. Skirtings were again in very strong demand, and oddments were keenly sought after. Crossbred prices continued to lift during the week, with increases of 8 to 18¢ in their average MPGs.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 48,858 bales are currently rostered for sale. Current estimates for the following three sales vary from 31,200 (North and South only) to 46,900, a fall of 16.9% over the four sale period when compared with last year. China remains as the dominant buyer.
In sales in South Africa, the Cape Wools Indicator moved up by 1.2% from the previous sale two weeks ago, while the exchange rate moved upwards by 1.6% against the US$ and by 1.5% against the Euro.
Australian Wool Innovation Limited
marketing@alchempro.com
