Australian Wool Market Shows Modest Increase
March 23, 2018
After falling for six consecutive trading days, the market recovered some ground this week, concluding with a 27-cent increase in the AWEX Eastern Market Indicator. Although the result was on the positive side of the ledger, for most of the Merino fleece sector it was a case of “two steps forward, one step back” after a modest downturn on the last day.
The movements appeared to be influenced by currency fluctuations, given that it tracked the AUD (inversely). A fall of 1.8 cents to 77 U.S. cents initially boosted the market before it was hampered by a half-cent increase on the final day. In U.S. terms, the EMI barely moved, dipping 3 cents for the series.
Overall, the Merino sector finished between 20 and 50 cents dearer. The better types maintained support throughout the final day despite the weaker undertones. High mid-break wool was increasingly neglected and extended discounts. Merino skirtings opened on a firm footing and mostly held onto their gains, finishing slightly higher. Crossbreds also had a positive sale, closing 20 cents higher on the previous week.
Merino cardings closed out the week ahead, improving 30 cents clean on the east coast. The next two auctions are forecast to have approximately 47,000 bales each, separated by the one-week Easter recess. Volumes are then expected to gradually contract as the season winds down.
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