Australian wool auction markets generally consolidated around ruling price levels this week after the strong gains of the opening sale. Some handy advances did continue on super fine (16.5u to 17.5u) and ultra fine (finer than 16.5u) Merino wools, but on the whole, the market eased by around 20ac clean/kg in Australian dollar (AUD) terms. Significantly though, the market was largely unchanged to slightly dearer when expressed on a US dollar (USD) basis. This is significant given the world largely buys wool in this currency and therefore this is a true reflection of the market. The AWEX EMI (Australian Wool Exchange Eastern Market Indicator) eased back 17ac for the week to close at 1801 ac clean/kg, but actually gained 3usc to finish at 1434usc clean/kg.
Following on from the extremely strong season opening, most trade participants had expected a largely unchanged market and just reactive to the USD v AUD exchange rate. This is largely what eventuated. What did surprise though was that the market held on and actually continued to generally gain ground throughout Tuesday and the most part of the Wednesday auctions before finally relenting to the large 54,000-bale plus quantity on offer in the latter part of the selling week.
Click here to access AWI's Wool Weekly Market Report (PDF 847 KB)