The Australian wool market finished 2.9 percent lower, on average, at sales in Sydney and Melbourne this week. The AWEX EMI fell by 29c (-2.9 percent), ending the week at 956c/kg clean.
This reflected decreases of 29c ( 2.9 percent) in the North and 28c (-2.9 percent) in the South, with their corresponding Regional Indicators finishing the week at 982c and 935c clean respectively. With no sale in Fremantle, the Western Indicator remained unchanged at 980c.
Prices remain at high levels despite the sharp fall during the week. When compared with the start of the upward movement of the market in October, the EMI and the Northern, and Southern and Western Indicators are now up by 215c (29.0 percent), 216c (28.2 percent) and 215c (29.9 percent), respectively. 19 to 23 micron average AWEX Micron Price Guides (MPGs) are up by 227c to 247c clean over the period and by 194c for 24 micron wools. At the fine end, the changes are 159c for 17 micron wool, 211c for 17.5, 190c for 18 and 219c for 18.5 micron wool. 26,289 bales were on offer, compared with 48,293 last week, of which 14.7 percent were passed in, comprised of 12.7 percent in Sydney and 17.0 percent in Melbourne.
Pass in rates for Merino fleece and skirtings were 19.4 percent and 9.4 percent respectively. 872 bales (3.2 percent) were withdrawn prior to sale and re-offered wools made up 10.3 percent of this week's offering.
When looked at in other currencies, the AWEX EMI decreased by17c (-2.1 percent) in US terms and by 18c (-2.9 percent) in Euro terms when compared with the previous sale. The changes in the EMI in US and Euro currencies since mid October are now 255 USc (+46.0 percent) and 161 Euro cents (+36.4 percent). The EMI in US terms (809c) is 114c above the 2002/03 peak of 695c.
In a one day sale, in Melbourne on Wednesday and a two day sale in Sydney, the AWEX EMI fell by 25c on Wednesday and by 4c on Thursday. The market commenced on a high degree of uncertainty when it was announced earlier in the week that the rostered quantity for the first sale in July (the last sale before the mid-season break) had increased by 20 percent over the previous week's estimate.
Fleece wools came off sharply on Wednesday, with the greatest falls again being at the fine end where average MPS came back by 40 to 60c. Medium micron average MPGs eased by 20 to 30c.
Skirtings were less affected, as seen in their lesser pass-in rate of 9.4 percent, compared with 19.4 percent for fleece wool. Oddments also lost ground during the week with the AWEX Merino Cardings MPG falling by 9c. Crossbred average MPGs were 4 to 13c below last week's closing levels.
Sales will be held in Sydney, Melbourne and Fremantle next week, when 61,577 bales are currently rostered for sale. The Current estimate for the remaining sale (Sale 1 of next season) before the general recess is 64,074, a decrease of 1.9 percent over the two sale period when compared with last year. South African sales are now in recess. The National Wool Production Forecasting Committee meets next Thursday and will release the latest forecasts on Friday afternoon.
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