The EMI in US terms (779¢) is 84¢ above the 2002/03 peak of 695¢.
There is continuing volatility in the US exchange rate, being affected by the big swings in both directions in global stock markets and the Reserve Bank lifting interest rates by 0.25% on Wednesday.
The market opened on a very firm note with increases across all micron types and wool types in all centres. In particular, the offering of Tasmanian wool in Melbourne on Wednesday attracted very strong demand for the best fine wool types.
Thursday saw a settling, as the market held at Wednesday's level to close with 17 to 18.5 average Micron Price Guides (MPGs) up 20 to 35¢, 19 microns by 40¢, 19.5 to 21 micron by around 30¢ and 22 to 24 by 20 to 25¢. Skirtings were in keen demand again and while oddments were generally firm or moved up. Crossbreds were also in keen demand, with their MPGs finishing up by 5 to 7%.
Purchases were widely spread, with the reduction in activity by buyers for China again evident. There is still no news of any resolution of the Chinese wool quota issues. Meetings are taking place now between the Australian and Chinese Governments.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 39,558 bales are currently rostered for sale. Present estimates for the following three sales vary from 46,800 to 48,400 bales, a decrease of 14.9% over the four sale period when compared with last year. These figures are down by around 10% when compared with last week's five week forecast.
The volumes offered to date (-19.1% down on last year) and expected to be offered over the next four weeks (-14.9%) are at historic lows with two day sales in the East and one day sales in the West. How much is due to wool being withheld from sale until the Chinese issues are resolved, the fall in production, the reduction in in-store and on-farm stocks or the weather is not yet clear.
Australian Wool Innovation Limited
marketing@alchempro.com
