The changes in the EMI in US and Euro currencies since mid October are now 272 US¢ (+49.1%) and 179 Euro cents (+40.5%). The EMI in US terms (826¢) is 131¢ above the 2002/03 peak of 695¢.
In a two day sale, the AWEX EMI fell by 11¢ on Wednesday and by 2¢ on Thursday. The Western Indicator dropped by 27¢ on Wednesday, after the two week break, and by 3¢ on Thursday.
Although easing again, the market remains above where it was four weeks ago in Australian, US and Euro currency. The biggest changes were seen at the fine end in the North on Wednesday, as these wools gave up some more of the post-Easter gains and in the 19.5 to 22 micron range in the South yesterday. Overall, 16.5, 19 and 19.5 average MPGs eased by around 30¢, while others were down in the order of 15 to 20¢. Skirtings generally finished on a firm or slightly upward note after easing in the North and the West on Wednesday.
Oddments were in good demand yesterday after being reported as irregular on Wednesday. Crossbred average MPGs came back by around 15¢.
A major unknown this week is the news from China that a major algal bloom on Taihu Lake has resulted in the closure of a number of scouring plants in the area and whether it had any impact on the market. Nevertheless, the main buyers were for China with a strong presence of buyers for Italy among the fine wools.
Sales will be held in Sydney and Melbourne only next week, when 26,850 bales are currently rostered for sale. Current estimates for the remaining two sales (including Sale 1 of next season) before the general recess vary from 53,200 to 57,045, a decrease of 16.6% over the three sale period when compared with last year.
In the last South African sale before their recess, the Cape Wools Indicator fell by 2% over the two weeks since the previous sale, against fall of 1.3% in the US exchange rate and a fall of 0.2% in the Euro exchange rate.
Australian Wool Innovation Limited
marketing@alchempro.com
