Another good week for better type skirtings

The AWEX Regional Indicators finished 2.8% higher, on average, at sales in Sydney, Melbourne and Fremantle this week when the US exchange rate rose by 0.2%.

The season average for the AWEX EMI (1101¢) continues to rise and is now 232¢ (26.7%) above the average to the same time last year.

The greater rise in the Western Market Indicator included a catch-up component for last Thursday, when there was no sale in the West and the EMI rose by 9¢.

38,931 bales were on offer, compared with 37,518 bales last week. 10.6% were passed in, comprised of 10.5% in Sydney, 9.1% in Melbourne and 15.9% in Fremantle. Pass-in rates for Merino fleece and skirtings were 7.4% and 14.3%, respectively.

134,792 bales were cleared to the trade.

Sale quantities have fallen away sharply over the last two weeks and are forecast to fall further over the next three weeks. The falls, no doubt, reflect both the normal seasonal shift and that there was considerable early shearing, as growers sought to take advantage of the very good market and (in Eastern Australia) to minimise the risk of fly strike. The supply situation is compounded by South Africa having only two more sales this season and limited wool supplies in New Zealand.

The US exchange rate was much less volatile than in the previous four weeks. The fall on Monday was attributed to softer commodity prices and the increase on Tuesday was attributed to perceived hints from the Reserve Bank that interest rates may have to rise sooner, rather than later.

It was another good market, (particularly on Thursday when the AWEX EMI rose by 28¢), following the leads given last week and on the closing day of two weeks ago. The closing EMI has risen by 58¢ in the last two weeks and by 48¢ in US currency.