The return of a positive trend to Australian wool auction markets accelerated significantly during this week’s sales. In a staggering week of good fortune for wool growers who were selling, most Merino wool types on offer were verging on a full 100ac clean/kg dearer by the close of selling, with some individual lots advancing 150 to 200ac. Crossbreds were by no means neglected either, as these wools all headed 50 to 70 ac higher. The AWEX EMI (Australian Wool Exchange- Eastern Market Indicator) gained 80ac clean/kg to close at 1818ac clean/kg, equalling the record level set in January of this year.
Whilst new demand from China was the key driver behind this week’s push in the market, our AUD (Australian dollar) exchange rate against all major currencies was also a factor, particularly in USD (US Dollars). The USD strengthened relative to the Australian dollar by nearly 3%. The result was the EMI when expressed in USD rose by just 1.6% in comparison with the 4.6% rise in the AUD EMI. This situation certainly assisted those using USD to buy wool to keep in touch with the rising costs in AUD of wool at auction. The USD EMI concluded the week at 1420usc clean kg, a gain of 22usc for the week.
Click here to access AWI's Wool Weekly Market Report (PDF 744 KB)