Weekly Wool Prices

Week Ending September 7 (Week 10)

10 September 2012

The AWEX Regional Indicators finished 0.7% lower, on average, at sales in Sydney, Melbourne and Fremantle this week when the US exchange rate fell by 1.3%.

Sales were held on Tuesday and Wednesday this week, to fit in with Australia’s annual Wool Week.

The market opened on a mixed on Tuesday, with falls in most Merino MPGs, of which the smallest were from 20 to 24 microns. The falls were greater in the Merino fleece types than in the non-fleece types and the crossbred wools. Prices for Merino fleece types eased again on Wednesday, with the greatest downward movements this time being at the medium and broader end of the Merino wools. Non-fleece Merino generally did quite well again, while crossbred types rose in the North and eased in the South.

The closing EMI was 367¢ (-28.4%) less than in the same week last year; while the WMI was 363¢ (-28.2%) less than in the same week last year. They were down by 143¢ (-13.4%) and by 152¢ (-14.1%), respectively since the start of the season.

The falls were cushioned by a fall in the US exchange rate.

In other countries, the South African Cape Wools Indicator was down by 2.4% since last week. In New Zealand, the Wool Services International crossbred Indicators were down by 2.5 to 5%.

Among other fibres, December Futures for cotton fell by 1.2% during the week, following the previous week’s rise of 2.7%. The closing quote was 76.30 US¢ on Friday.

CentreLast SaleDay-to-Day Changes (Week 10)Sale-to-Sale ChangeClosing IndicatorSale-to-Sale Changes
WeekIndicatorTuesdayWednesdayThursdayUS ¢Euro ¢
Eastern

09

934

-1

-6

No Sale

-7 (-0.7%)

927

-19

-14

Northern

09

945

+2

-3

No Sale

-1 (-0.1%)

944

-14

-10

Southern

09

926

-3

-8

No Sale

-11 (-1.2%)

915

-23

-18

Western

09

932

-8

No Sale

No Sale

-8 (-0.9%)

924

-20

-16


36,758 bales were on offer, compared with 38,508 bales last week. 10.4% were passed in, comprised of 8.3% in Sydney, 11.9% in Melbourne and 10.5% in Fremantle. Pass-in rates for Merino fleece and skirtings were 12.4% and 6.6%, respectively.

32,942 bales were cleared to the trade.

The year-to-date offering is 37,531 bales less (-11.8%) than at the end of the same week last year (see table below). That figure is expected to remain unchanged over the next three sales.

Exchange rates with the United States, and other countries, continued to ease during the week. This was mostly due to further indications of more moderate growth in China, continuing concern about the economic situation in Europe and lower commodity prices.

The US and Euro exchanges rates on Wednesday were down by 3.7% and by 4.4%, respectively since their season peaks were reached four weeks ago.

Exchange Rates
(Reserve Bank)

Last Sale

Day-to-Day Changes

Sale-to-Sale
Change

Closing Value

Season Min & Max

Fri

Mon

Tues

Wed

Thur

Min

Max

United States

105.16

-0.36

-0.35

-0.10

-071

No

-1.32 (-1.3%)

102.05

101.70

105.93

Euro

83.90

0.04

-0.73

-0.19

-0.07

Sale

-0.95 (-12%)

81.40

81.40

85.63

Sale-to-Sale Changes in Average AWEX Merino Micron Price Guides (MPGs)
Micron16.517.017.518.018.519.019.520.021.022.023.024.0
Since Last Sale:
Change ¢

-17

-28

-27

-29

-16

-9

-3

-11

-7

-10

-1

-28

Change %

-1.2%

-2.2%

-2.2%

-2.5%

-1.4%

-0.8%

-0.3%

-1.0%

-0.7%

-1.0%

-0.1%

-2.9%

Since Start of the Season:
Change ¢

-251

-179

-176

-184

-192

-177

-162

-163

-167

-186

-203

-190

Change %

-15.7%

-12.5%

-12.7%

-13.9%

-14.9%

-14.1%

-13.2%

-13.4%

-13.8%

-15.3%

-16.8%

-16.7%

Since Same Week Last Year:
Change ¢

-996

-846

-706

-570

-507

-432

-369

-318

-259

-170

-102

Change %

-44.3%

-41.2%

-38.2%

-34.2%

-31.9%

-28.9%

-26.0%

-23.3%

-20.1%

-14.5%

-9.7%


Skirtings started well in the North and the South on Tuesday, but were generally easier in the West. This pattern continued on Wednesday when only the North and the South sold. The deand for skirtings was reflected in the low pass-in rate of 6.6%

Crossbreds again did better than Merino types, particularly in the North.

Oddments also had a generally good week.

Sale-to-Sale Changes in Other Average AWEX Price Guides
Micron25.026.028.030.032.0MC#
Since Last Sale:
Change ¢

-11

+1

+9

+1

+11

Change %

-1.3%

+0.2%

+1.7%

+0.2%

+2.0%

Since Start of the Season:
Change ¢

-115

-75

-41

-53

-45

Change %

-12.3%

-11.9%

-7.0%

-10.7%

-7.5%

Since Same Week Last Year:
Change ¢

-39

-130

-90

-140

-186

Change %

-4.6%

-18.9%

-14.2%

-24.1%

-25.0%

# Average Merino Cardings Price Guide

Buyers for China were dominant this week, followed by strong support from buyers for India.

Highlights from the Australian Bureau of Statistics export data for June, and for the July to June period for the top five export destinations and three other key destinations follow.

Country% Share of Australia’s Wool Exports by Weight of Wool ShippedYear-on-Year % Change in Wool Exports
June 2012July - June This SeasonJuly - June Last Season
China

76.1%

75.8%

74.4%

-8.4%

India

10.1%

6.9%

7.7%

-18.8%

Italy

1.9%

4.7%

5.1%

-17.3%

Czech Republic

3.1%

4.0%

4.1%

-12.9%

Taiwan

1.5%

2.2%

2.5%

-20.5%

Korea

1.2%

1.4%

1.2%

7.5%

Malaysia

1.1%

1.0%

0.7%

20.2%

Thailand #

0.0%

0.2%

1.0%

-82.9%

# Affected by Bangkok floods in October 2011 Change all Countries-10.1%


Sales will be held in Sydney, Melbourne and Fremantle next week, when 36,788 bales are currently rostered for sale. Present estimates for the following two sales (Weeks 12 and 13) are 45,230 and 38,900 bales, respectively; a decrease of 11.9% over the three sale period when compared with last year.

The New Zealand Merino Company is rostered to offer 1,000 bales in Week 12.

In South African sales, the Cape Wools Indicator was down by 2.4% since last week against a 0.5% depreciation of the Rand against the US Dollar and a 0.3% depreciation against the Euro. 5,794 bales were on offer.