News

Australian wool price indicator holds, helped by exchange rate

Sheep Central, September 7, 2018

AUSTRALIAN wool price indicator held firm this week, helped by exchange advantages for buyers and demand for the seasonally lower supply.

The AWEX Eastern Market Indicator lost just two cents to close at 2088c/kg clean, as the 17-20 micron clip prices lifted 13-32 cents.

Brokers offered 38,516 bales, 2528 more than last week, and 4.1pc of the offering was passed in.

AWEX senior market analyst Lionel Plunkett said in the seven auctions held for the current selling season, the cumulative national total is 39,000 bales lower (-12.5pc) than for the same period in 2017/18.

“The exchange rate gave overseas processors some assistance with their purchase cost when the local currency continued to trend lower against the US dollar.

“Midway through the week the A$ hit US71.5 cents, a two-year low, before staging a recovery to finish at 71.68 cents late on Thursday.”

The AWEX EMI in US$ terms fell 19 cents to US1497c/kg clean, and Mr Plunkett said price-wise in local terms, the market opened on a strong note and resumed its upward trajectory from last week.

“The first day recorded widespread increases, but the momentum could not be maintained, and prices eased back on Thursday to the tune of 20 to 30 cents.

“At the close, price variations were mixed with Melbourne showing 20 cent falls when compared to its unusual Friday sale, while Sydney recorded 20 cents gains when compared to the Thursday.”

Mr Plunkett said Merino skirtings found good support and were mostly firm on the previous sale.

However, the smallest national crossbred offering in three years had mixed results; firming in some areas and losing ground in others.

Merino cardings were also reasonably limited, and the Merino Carding Indicators closed with only minor movements, he said. Next week just under 35,000 bales are expected nationally in three selling centres.

Click here to see the latest AWEX Micron Price Guides.

Source: AWEX.

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