Wool Prices Weaken

April 22, 2005

     April 22, 2005 - Wool prices failed to gain any traction this week in Australian and New Zealand markets, with sales at a similar level to last week's close.
     At current levels, the AU$/US$ exchange rate has appreciated by 11 percent season-to-date, while the Eastern Market Indicator (EMI) in U.S. dollar terms, over the same period, has fallen 2.7 percent. Combining these two numbers would imply a 13.7-percent decline in the EMI in Australian dollar terms with a 100 percent correlation. Currently the EMI in Australian dollar terms has declined around 10 percent year-to-date.
     Domestic wool trading on a clean basis is slow. Demand is light to moderate with the best demand for reputation clips less than 22 micron with core tests.

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