The exchange rate against the Euro decreased by 0.36 Euro cents (-0.6 percent) to close at 61.22 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI decreased by 1¢ in US terms and by 4¢ in Euro terms when compared with last week's sale. The appreciation in the A$ was attributed to easing fears of a rise in US interest rates following the announcement of weaker retail sales.
In a two day sale, the AWEX EMI decreased by 1¢ on Wednesday and by 2¢ on Thursday. The Western Indicator decreased by 5¢ on Wednesday and by 1¢ on Thursday.
The market held up well this week considering the appreciation in currency, the quality of a lot of the offering and the large number of bales on offer yesterday - 36,293, including 15,778 in the South.
In a variable start to the week, prices moved upwards in the North, while easing slightly in the South and the West. In the North, the AWEX 17 micron Indicator rose by 22¢, while gains varied from 0 to 7¢ over other Merino micron ranges. The easing on Thursday was across all micron groups in all centres. Skirting types remained firm for low VM wools, but eased for those with high VM.
Crossbreds were generally unchanged or a little firmer, apart from a fall of 6¢ in the 30 micron Indicator on Wednesday. Oddments were generally unchanged throughout the week, with some small losses and gains.
There was widespread support across the buying trade with China dominant and good support from Europe and the topmakers.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 64,872 bales are currently rostered for sale.
The latest production forecast data have been released, predicting a 4 percent fall from last season to 456 mkg and a 2 percent recovery to 467 mkg next season.
Australian Wool Innovation Limited
marketing@alchempro.com
