Wool-Selling Season Prices Close Higher in AUD Before Three-Week Recess
July 1, 2016

It was a strong finish to the 2015-16 wool selling season (June to July) with the benchmark Australian Wool Exchange Eastern Market Indicator closing 12 cents higher at 1297 cents, a level beaten only twice before in the past 12 months and was just shy of the season-high of 1304 cents. It was the second highest season-closing level on record.

Although all Australian centers were in operation, it was another small sale of 28,866 bales making it the smallest three-center sale since August. It was a similar pattern to last week with the overall market spurred on by strong support in the medium/broader micron ranges. Nineteen and a half to 23-microns rose in equal increments, climbing around 20 cents clean for the week. Although the finer microns also closed ahead, their results lagged their broader counterparts, firming by a more modest 5 to 10 cents clean.

The increase in merino fleece prices came despite global uncertainty surrounding the British referendum result to leave the European Union. The Australian dollar lost ground as traders looked for safe-haven currencies, such as the U.S. dollar. In U.S. terms, the EMI barely moved, easing a modest 2 cents.

Although June 30 was the end of the Australian wool season, two more auctions will be held before the annual three-week recess.