In the second week of August, the Australian wool markets got off to a good start after the disappointing finish prior to the mid‐year recess. The EMI made a solid gain of Aus cents 17 a kg. A weaker Aus$, saw the EMI fall US cent 1 in US$ terms.
In Melbourne, sales opened well with fine wools lifted and medium to broad micron merino fleece wools picking up. Prices generally improved, with most categories closing on their highs. Crossbreds also made good gains while oddments were dearer.
Australian wool market is looking out for potential market for their wool, with Europe, Korea and Japan taking only a small portion of their clip. Australian wool market is working out marketing strategy with an aim to provide their farmers with good return and expand the demand for the fibre. At present, China receives around 80 percent of their wool clip, they are working on reducing their dependence on China.
This week at auction sales in Australian wool market witnessed the AWEX EMI inching up another 4c to 1,132c although the market may have been aided by the weakening AUD against the US Dollar falling to 87 USc.
The 18 micron and finer fleece wool gained another 20c to 30c this week; however, the 19 micron fleece remained firm whilst coarser merino fleece failed to hold its previous levels especially on the final day.
UK-based company H.Dawson wool, an international wool suppliers and processors of raw wool and speciality fibers after a short absence from the Australian wool market is back buying wool. The company has been buying Australian wool since 1888 but following a required internal restructure and market conditions at the time, it temporarily closed the Australian component of its business in 2007.
