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Weekly commentary on the wool market from AWI trade specialists.
The national wool auctions produced a positive result this week out of Australia. For the time being, this has reversed the slow decay of the average market price that has been the trend for two months. In fact the Australian Wool Exchange (AWEX) reports state that this latest drift is the longest since November 2003, when measured in weeks selling, The AWEX Eastern Market Indica-tor (EMI) gained 7ac or 0.36% to close higher at 1943ac clean/kg. The EMI when expressed in USD was even stronger and recorded a 12usc or 0.88% to see that indicator close at 1399usc clean/kg.
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Australian wool auctions generally meandered along this week in much the same fashion as the past month or so, with the glaring exception of the crossbred sector which continues to post new all-time highs. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) lost 7ac or 0.36% to close at 1937ac clean/kg. The EMI when expressed in USD was actually stronger by 5usc or 0.37% to see that indicator close at 1387usc clean/kg.
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Results this week at the Australian wool auctions produced prices similar in trend to the existing patterns. The Merino fleece and skirtings sectors are still drifting downward trying to adjust and find comfortable trading levels for the heavily drought-influenced on quality of the selection. Crossbreds remain well sought and continued to strengthen, whilst cardings realized further losses. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) lost a minor 4ac or 0.2% to close at 1943ac clean/kg. The EMI when ex-pressed in USD was unchanged at 1382usc clean/kg.
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Very mixed fortunes was the result this week at the Australian Wool auctions. Merino fleece type were cheaper in the east but dearer in the west, cardings were hit hard and devalued by the short wool market trying to find new levels of comfortable trade and crossbreds tracked to higher levels yet again. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) fell 16ac or 0.8% to close at 1947ac clean/kg. The EMI when expressed in USD was even more affected as the ac/kg fall combined with a 0.7% weaker AUD to see the USD EMI 21usc or 1.50% lower to close at 1382usc clean/kg.
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It was a rather mundane market this past week at Australian Wool auctions. Price variations on all types apart from carding wools were minimal with just 5 or 10ac movements either side of the established values. The strengthening Australian dollar (AUD) against the US dollar (USD) was the most influential price determination factor at levels 1.22% higher which placed downward pressure on some areas of the offering. The declining quality of wools available, particularly in Sydney also played a role. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) fell 16ac or 0.81% to 1963ac clean/kg. Conversely though, in USD terms, the EMI increased by 6usc or 0.40% to close at 1403usc clean/kg.
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