No pattern as wool stays firm
The Australian wool market remained firm as the benchmark indicator finished at 1556 cents/kg last week, 2¢ lower in Australian currency and 12¢ higher in US currency at sales in Sydney, Melbourne and Fremantle.
Australian Wool Exchange reported that the Fremantle market experienced larger falls than the East, generally 20¢ to 40¢, with 18.5 and finer most affected.
Australian Wool Industries Secretariat executive director Peter Morgan said the market differed from the previous week, but showed no clear pattern, with the week-to-week changes ranging from -10¢ to +15¢.
“The US exchange rate finished 0.93¢ higher based on a weaker US currency following the reported detonation of a nuclear device in North Korea,” he said.
“The Australian dollar closed at 79.91¢ on Thursday, before moving up a further 1.3¢ on Friday to finish the week at 81.21¢.”
The Elders International Wool Report stated uncertainty for the wool market. “The exception is the superfine sector while the rest of the market may go up or down,” an Elders spokesman said.
“The few lots available of the best superfine Merino types were keenly sought after by Italian buyers while medium Merino fleece, despite being in abundant supply, managed to close the week more or less unchanged in local currency.”