Wool Prices Falling Across The Board

Wool prices last week fell across the board in Australia, South Africa and New Zealand, as a result of a new rise in domestic currencies and a continued weakness in demand.

Lack of supply will possibly not be enough to support wool prices at so high levels.

As a consequence, wool prices sharply decreased in Australia. Benchmark indicator EMI was down no less than 34 Australian cents or 2.9% at 1,1124 cents per kilo clean, reflecting a decline of 42 cents on the Northern market while prices were down 28 cents in the south.

In addition, the Western market indicator this week fell 37 cents in Fremantle.

The EMI was down 5 cents on Tuesday before falling 10 cents and 19 cents on Wednesday and Thursday, respectively.

The new fall in demand was mainly due to a new rise in the Australian dollar which increased by 1.21% and reached the symbolic level of 60 US cents during the week.

As a result, prices did not substantially decrease when translated into US dollars. The EMI declined only 3 cents or 0.4% at 686 cents per kilo clean.

All micron categories were affected by this week's fall which also reflects poor quality of offered wool.

South Africa

In South Africa, the rise in the rand depressed prices which dramatically fell. Cape Wool's Indicator was down no less than 5.8% at 43.05 rand per kilo clean.

In US$ terms, the South African indicator fell 13 cents or 2.4% at 533 cents.

New Zealand

In New Zealand, prices also decreased in Christchurch with strong indicator down 10 cents at 439 cents while medium indicator declined 37 cents and lamb decreased 9 cents.

New Zealand's production substantially fell in the past years, sheep numbers being down 21% from 1994 to the lowest level since 1955.