M36 Wool Market Report

42,488 bales were on offer nationally, compared with 46,727 bales last sale. 7.8% of the offering was passed in.

The market opened on a steady note in Australian currency when only Melbourne sold; and the EMI was unchanged. There was little change over the next two days, with the EMI down by 3¢ at the close of selling on Thursday. The EMI fell by 7¢ on a week-to-week basis in US currency, which left it only 2¢ lower than its level of two weeks ago.

The EMI reached a season peak of 1101¢ four sales ago in week 32. It fell by 9¢ in the following week, since when it has moved only slightly each week. The WMI has followed a similar pattern.

Week-to-week changes in the average AWEX Merino MPGs were similar across all micron ranges, varying from -0.8% to ‑0.1%. Crossbreds started the week slightly up on the previous week’s closing prices, before easing slightly on Thursday. They closed on a more variable basis than Merino types with some pluses and some minuses.

It was a mixed week for Merino skirtings, which probably finished slightly down from an overall perspective. Oddments generally tended downwards. The average Merino Cardings Indicator finished at 907¢, down by 2¢.

The US exchange rate finished 0.37¢ (-0.5%) lower to close at 78.20¢ on Thursday. It eased on Monday and Tuesday in expectation many that the Reserve Bank would lower official interest rates on Tuesday; and corrected upwards on Wednesday when the RBA left rates unchanged.

Buyers for China were dominant, with support from buyers for Europe and India.