Australian Wool Auctions begin Three-Week Recess
July 15, 2016

Wool prices moved lower this week with some buyers reporting keen enquiry for the new season set to start after the annual three-week mid-year sale recess. The fall came after a month of gains and was partly caused by a stronger Australian dollar and an influx of wool.

After four weeks of price gains, the Australian Wool Exchange Eastern Market Indicator closed 9 cents down to 1311c/kg clean, with the Australian-U.S. dollar exchange rates up 0.92 cents to US76.16 cents.

Weighing down on local wool prices was continuing strength in the Australian dollar, which pushed through 76 U.S. cents, almost 1 cent higher than the previous week. In U.S. terms, the EMI continued to climb and made a 12-month high, closing the week 5-cents higher at 998 U.S. cents. Its most recent low on this basis was made only nine months ago and is now trading 33 percent higher after making steady increases.

The Australian wool market now goes into its annual mid-year recess. Sydney, Melbourne and Fremantle will take a three-week break from sales and resume Monday, Aug. 8.