April 13, 2007
April 13, 2007 - The Australian wool market edged higher in local currency terms, but price gains were more substantial in U.S. dollars (US$).
The Australian dollar continued to strengthen against the US$ and euro this week, despite the Reserve Bank of Australia not raising interest rates this month. This stronger currency translates to the Eastern Market Indicator closing at 762 US cents/kg clean (US$3.45 per lb. clean), up US 4.5 cents/lb. or 1.3 percent for the week.
In Wednesday's Australian market, medium merino fleece wool prices for 21 micron to 23 micron were up strongly, especially in the southern market where prices for these categories rose by as much as AU 25 cents/kg clean (US 9.3 cents/lb. clean).
New Zealand (NZ) wool market continued to decline this week, helped in part by the NZ dollars strength against the US$. The NZ Wool Services fine crossbred indicator (32 micron to 35 micron) closed at 335 NZ cents/kg clean (US$1.08 per lb. clean), a 2 percent decline, while in US$ terms the fine crossbred indicator closed lower by 1.4 percent. Reprinted in part from WoolXpress