Wool Market Gains Momentum

For the first time in eleven weeks the Australian wool market gained some ground this week with prices increasing by 0.9% on average at sales in Sydney, Melbourne and Fremantle.

The EMI picked up 2¢ (0.3%) to finish the week at 781¢/kg clean. This reflected rises of 4¢ (0.5%) in the North and 2¢ (0.3%) in the Southern market, with their corresponding Regional Indicators ending the week at 796 and 768¢/kg clean respectively. The sale in Fremantle saw the Western Market Indicator increase 13¢ (1.8%) to finish at 752¢/kg clean.

49,395 bales were offered for sale with 11.4% passed in, comprising 9.1% in Sydney, 12.3% in Melbourne and 13.5% in Fremantle. 4,967 bales (9.1%) were withdrawn prior to sale.

The US exchange rate bounced around during the week, falling by 0.50¢ on Monday, and rising by 0.77¢ on Wednesday, before closing at 72.16¢ last night, 0.26¢ (0.4%) above the previous week.

Contrary to recent weeks, the market held firm over the first two days, with the EMI rising by 3¢ on Tuesday and a further 2¢ on Wednesday, before easing by 3¢ on Thursday. Rises were seen across all micron ranges in Sydney on Tuesday and in the South and West on Wednesday. The softer market on Thursday in the North and South saw easing across with some "holes" occurring. Wools with high mid-breaks were subject to downward pressure as a consequence of exceeding contract specifications.

Demand for carding types was strong, with locks increasing throughout the week.