Market Summary

Wool Market Report 27 August 2010 

EMI (Eastern Market Indicator) and Market Summary -

The EMI closed this week at 872ac/kg - this represents a fall of just 2 cents.

Mixed results occurred throughout with the finer end continuing to strengthen and the broader end weakening.

Yesterday saw the market start on a relatively weak note before recovering in the second half of the sale.

The Aussie dollar ranged between $0.88 and $0.89 USD, so the currency didn't really play a major role.

Of the 38,804 bales on offer, 14% were passed in.

**Please note the overall long-term average highlighted in each Graph.

EMI Historical Graph past 20 years (click image to view larger)EMISM

Currency trends -  

The AUD closed the week at 88.7usc. 

In USD terms, the EMI closed 10 cents lower, which has been a first in a number of weeks. 

Australain Dollar Exchange Rate graph past 20 years (click image to view larger)Aud UsdSM 

Merino Fleece -

19.0mic and finer continued to rise sharply, especially in the South where 17.5mic and finer jumped another 30ac/kg.

20.0mic and broader fell approx. 10 cents/kg overall, although they did finish on a very solid note.

17.5mic EMI Historical Graph (in cents/kg clean) past 20 years (click image to view larger)17.5micSM

19.5mic EMI Historical Graph (in cents/kg clean) past 20 years (click image to view larger)19.5micSM

21.0mic EMI Historical Graph past 20 years (click image to view larger)21.0micSM 

22.5mic EMI Historical Graph past 20 years (click image to view larger)22.5micSM

Merino Skirtings -

Skirtings wools continued to strengthen and similar to the Fleece, it was the finer end that received the strongest support.

Xbred Wools -

Xbred wools remained unchanged overall on a very limited offering.

28.0mic EMI Historical Graph past 20 years (click image to view larger)28.0micSM

Cardings -

Carding wools were weaker with sharp falls recored yesterday.

Merino Cardings EMI Historical Graph past 20 years (click to view larger)MCardingSM

Weekly Outlook 

The market should remain fairly solid next week and again it will depend what the currency does.

It would appear that the good season has increased both cut-per-head and fibre diameter. At this stage, it's expected that fleece weight will be up approx. half kg and micron up 0.5.

Slightly less wool on offer next week with 36,765 bales rostered for sale. Newcastle will offer their first lot of wool for the season.

Viterra Wool