Drop in the wool mar­ket as dol­lar rises

Warwick Daily News - South West Queensland Rural Weekly - - News -

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

41c/kg, re­spec­tively.

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.

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