November 21, 2008
November 21, 2008 - The Australian Wool Industries Secretariat reports the wool market finished 2.3 percent higher, on average, at sales in Sydney, Melbourne and Fremantle this week after many weeks of a downward and slow market.
The eastern market indicator (EMI) rose by 22?/kg (2.9 percent), ending the week at 788?/kg.
It was second positive week in succession for the wool market, with the EMI up in Australian, U.S. and Euro currencies and an increase across all wool types and nearly all micron ranges. Lower overall prices have been attributed to the weaker U.S. and world economy, varying currency and the concern of weak retail sales.
The weak Australian dollar and Chinese quotas were the two main factors in breaking five successive weeks of falls. Other factors mentioned by exporters included tight wool supplies and the $855 billion Chinese financial stimulus to its manufacturing and banking sectors.
The EMI has now surged by 9 percent, picking up 65?/kg, over the last two sales, after its steep falls in October through November, as the world commodity crunch tightened. Reprinted from Stock and Land and Weekly Times Now, Australia