The AWEX EMI increased by 3¢ on Tuesday, by a further 15¢ on Wednesday and by 6¢ yesterday to complete a 40¢ rise over the first two weeks of 2006. The Western Indicator rose by 21¢ on Wednesday and 1¢ on Thursday.
In a period which has seen sustained falls since April 2003, this was the biggest increase in the EMI since September 2002 when the EMI rose by 162¢ from 979¢ to 1141¢. In a different exchange rate era at that time the A$ was worth 54.8 US¢ and the EMI was 636US¢ compared with today's price of 502US¢.
The sale opened strongly in Melbourne on Tuesday, particularly in the fine wools and the better types and remained so throughout the week, particularly on Wednesday. Fine Wool Indicators rose by up to 60¢ during the week.
However, changes from 24 microns up were more subdued, being confined to just a few cents or holding firm. The stronger close in yesterday's Northern market was associated with the offering.
While buyers for China dominated, as usual, there was also good demand from Europe and India. While the reasons for sudden changes in the market are not always clear, there does appear to have been some immediate buying activity to cover orders for delivery in the short term and with a much smaller number of bales on offer next week.
Sales will be held in Sydney, Melbourne over Tuesday and Wednesday next week with 37,396 bales currently roistered for sale. Thursday is the annual Australia Day Public Holiday. Itremains to be seen whether this week's price encourage more growers to offer their wool next week.
Australian Wool Innovation Limited
marketing@alchempro.com
