No relief from the very soft trading conditions that have characterized the beginning of the 2012/2013 wool season was evident at this week's auctions in Australia. The Australian Wool Exchange's Eastern Market Indicator (EMI) dropped by a further 4.62 percent to 949 Australian cents/kg clean and has now fallen by close to 8 percent since the season's opening. The further easing of the market was considered all the more negative by local growers as it occurred despite the Australian dollar depreciating slightly against its U.S. counterpart.
In U.S. dollar terms, the EMI fell by 5.78 percent this week and by 8.6 percent since the opening to stand at 995 U.S. cents/kg.
According to Rita Kourlis Samuelson, wool marketing director for the American Sheep Industry Association, "The wool market is still a bit weak although it can take a few weeks after the recess to tell where the market is going to level off."