Australian wool EMI up 1.2% this week

The Australian Wool Exchange's (AWEX) Eastern Market Indicator (EMI) increased 1.2 per cent to 1,368ac clean/kg during the sale week 12 of the current wool marketing season. The EMI grew with the continued reduction of Australian dollar against most currencies, remaining steady at US$0.72, leading to 0.2 per cent rise in EMI, in US dollar terms, to 992 usc cln/kg.

“Australian wool auctions produced largely positive results this week with around 83 per cent of wools offered selling to improved levels. Merino wools were generally 20 to 30ac dearer, with some better specified, stylish wools and accredited wools gaining 30 to 50ac on top of the already established premiums in the marketplace,”the Australian Wool Innovation (AWI) Limited said in its commentary for the week ending September 24.

Some of the weakening of AUD currency was due to concerns with significant debt repayments being met in China and also the plummeting Australian iron ore prices into China. The Western Market Indicator (WMI) put on 5ac to close at 1,397ac clean/kg.

“The European interest on the Merino fleece and skirting sector was even stronger this week and continues to place price pressure upon competitors. First stage manufacturers were atop buyers lists with over 25 per cent of Merino fleece wool being purchased by just two entities,”AWI added.

Moreover, crossbred wools were hard to sell again this week as weak demand, global supply and large stocks at all stages of the supply chain hamper any growth for the time being, the commentary said.

With the improvements in prices, the AWI forecasts next week’s volumes to grow 9 per cent to see 41,500 bales.