Sales this week in Australia featured the final designated super fine sale of the season and buyers certainly attacked the better selection on offer with plenty of enthusiasm. Strong purchasing from Italian interests was in evidence, but forward and spot traders also participated keenly. This sector alone assisted greatly in seeing the AWEX EMI (Australian Wool Exchange- Eastern Market Indicator) advance 10ac to 1830ac/clean kg. This figure represents another week-ending record high and earlier in the week on Wednesday a daily record all time high of 1834ac/clean kg was set.
In US dollar (USD) terms, the EMI was 6usc or 0.4% lower at 1415usc/clean kg by the end of selling, outperforming the exchange rate loss. The forex (foreign exchange) rate in USD v AUD was 1% lower for the week, thus showing the slightly improving demand sentiment that was communicated around the trade for the week. The fall in USD was half of the theoretical magnitude. In addition, the ruling rate as auctions were being conducted, was 0.5 higher at around the .778 mark as opposed to the week ending reporting level of .773.
Click here to access AWI's Wool Weekly Market Report (PDF 415 KB)