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 Wool market jumps 2.1pc higher for the week 

Wool market jumps 2.1pc higher for the week

13 Jun, 2008 12:02 PM
The Australian wool market finished 2.1pc higher, on average, at sales in Sydney, Melbourne and Fremantle this week, according to the Australian Wool Industries Secretariat.

It reports that the AWEX eastern market indicator rose by 25 cents a kilogram or +3pc, to end the week at 870c/kg (clean).

Region by region the changes were:

* 24c/kg higher or +2.7pc in the north, where the indicator finished at 911c/kg;

* 26c/kg up in the south (+3.2pc) to close oat 836c/kg; and

* a 4c/kg rise (+0.5pc) in the west, where the indicator finished the week at 847c/kg.

AWIS reports that she smaller rise in the western indicator was partly due to the two weeks break in sales in Fremantle, and it hosting only a one-day sale this week.

In the two weeks between sale days in the west, the EMI fell by 3c/kg (strongly influenced by the falls at the finer end) compared with the 4c/kg rise in the West.

There were 30,392 bales were on offer, compared to 30,154 bales last week when only Sydney and Melbourne sold, of which 8.3pc were passed in.

The US exchange rate was also a factor this week, closing US0.62c lower on Tuesday when compared to Thursday of last week.

It was then down by US0.43c on Wednesday and by US0.66c on Thursday to close at 93.79c, down US1.71c (-1.8pc) since the last sale.

The exchange rate also fell against the Euro by E1.25 cents (-2pc) to close at E60.63c on Thursday night.

In a promising sign for the market, this week's small offering will be followed by an even smaller line up next week.

Sales will be held in Sydney and Melbourne next week, when 20,119 bales are currently rostered for sale.

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