Drop in the wool market as dollar rises
A HIGHER Australian dollar was responsible for the weaker wool market last week.
The Australian currency moved towards the US73 cent level after sitting on US71 cents for the past few weeks.
As a result the Eastern Market Indicator fell 27c/kg to finish at 2067c/kg.
In its weekly report, Australian Wool Innovation said the market reflected the adjustments in currency, rather than wool value or demand.
Superfine merino wool experienced the largest drop, with the 17 and 19 micron indicators slipping 51c/kg and
The softer performance for the finer clip was despite “energetic” European interest recorded for the past few weeks.
“This week the largest Italian operator flexed their purchasing muscle and bought almost 2000 bales to add to their impressive season tally thus far,” the AWI report stated.
Landmark’s northeast wool manager David Hart said the “modest easing” came down to an influx of wool in the 17to 20-micron range. “We’ve got our best quality wool coming on the market, with intense competition,” Mr Hart said.
He said the drought-induced offering would remain well below last year’s volume, with
35,000 bales scheduled for auction next week.
Reaction to the easing prices from wool producers was evident in the pass-in rate, at 9.8 per cent, up more than 7 per cent on the previous week.
Mr Hart said most growers elected to meet the “still exceptionally strong” market but wool with a reserve price was likely to have been passed in.
The wool was from a July and August shearing of
10,000 weaner merino wethers and ewes and averaged 17.9 micron.
Crossbred wool held up in the market last week.