February 22, 2008
February 22, 2008 - Dragged down by strong currencies, wool prices received by growers continued to retreat from the late January high at auctions held in Australia (AU) and New Zealand (NZ) this week. However, pointing to continued market strength, both the AU and NZ wool markets continued to edge forward in overseas currency terms.
The AU Eastern Market Indicator (EMI) slipped 18 cents during the week to close at 974 Ac/kg clean. This A$ decline reflected falls of 15 cents (-1.5 percent) in the north and 20 cents (-2.1 percent) in the south, with their corresponding regional indicators finishing the week at 1016 cents and 939 cents clean, respectively. The Western Indicator fell by 26 cents (-2.6 percent), finishing the week at 972 cents.
When looked at in buyer currency terms, the EMI rose 1.8 percent in US$ terms compared with the previous sale. Over the week, the A$ strengthened against the US$ to 92 U.S. cents.
By micron, only superfine wool of 17 microns defied the overall market decline, lifting by a modest 0.3 percent in A$ terms. Prices for 18-micron and 19-micron wool softened by less than 1 percent. Supported by a firmer NZ market, prices for crossbred wool, particularly the broader descriptions, also held up relatively well. The greatest weakness was again exhibited in the 19-micron to 23-micron wool again exhibited the greatest price weakness, declining by up to 2.6 percent in A$ terms compared with last week. Reprinted in part from Woolxpress