Sentiment this week at Australian wool auction sales changed course to the positive. After spending a few weeks in reverse, wool values lifted once more due to a slight improvement in prompt demand, lighter volumes on offer and an advantageous forex (foreign exchange) rate. Most types and descriptions recorded gains almost to the cent of the forex differentials, except 19 to 21 micron Merino fleece which broke out beyond the percentage currency gain, indicative of some fresh demand. The AWEX EMI (Australian Wool Exchange- Eastern Market Indicator) regained all of the losses of last week and appreciated by 27ac for the week and closed at 1778ac/ clean kg.
Overseas customers would have thought that they had a lucky break with the all of the major currencies opening the selling week at over 2% to their advantage. The local wool market immediately kicked up by a similar magnitude but some of the keener overseas buyers had already locked in at the cheaper delivered price in USD and other currencies. After such a turbulent few days of forex fluctuations, the EMI movement when expressed in US dollars was far less excitable and ended up being just 2usc lower at 1377usc/clean kg.
Click here to access AWI's Wool Weekly Market Report (PDF 371 KB)