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.
Wool is New Zealand's 14th largest commodity export, worth an estimated $741 million in the year through November. Wool prices softened at the latest auction amid high seasonal supply from the 'main shear' shearing season from December to early February. Main shear typically accounts for about 60 percent of the annual crossbred wool clip. An increase in the New Zealand dollar since the last auction weighed on exporters, with the kiwi recently touching a 2 1/2 year high against the euro and close to its record.
Wool prices after ending the last selling season continued to remained in a slow, steady declining trend, though with a slight rebound was seen during the last week of the month, according to the Australian Wool Exchange.
The Eastern Market Index ended the month of September, the second in the 2014-2015 selling season, at $4.15 per pound, down $0.10 in the month (2 percent) and about 4 percent season-to-date. During the last week, however, prices increased by $0.06 per pound.
Prince Charles’ initiative to help sheep farmers has created a renaissance for the wool industry which is traditional textile that once made the country great. The Wool Project announced by Prince Charles has helped revitalize the industry by promoting wool as a sustainable material.
When the Prince of Wales conceived his Campaign for Wool crusade five years, bringing together all sectors of the industry, farmers were being paid less for a fleece than it cost to shear. Today wool prices have tripled.
The country's biggest wool exporter New Zealand Wool Services International Ltd, is expecting wool prices to hold their ground going into the new wool selling season but much depended on the currency.
According to New Zealand Wool Services International general manager John Dawson, more than half of New Zealand's wool exports have gone to China and the new uses China is finding for carpet-style wool has lead to rise in coarse wool prices.
Australian Wool Innovation (AWI) at its last annual general meeting had announced that the Australian wool clip had increased in value by $800 million in five years. Yet wool growers are struggling to make ends meet.
As the wool price continues to fluctuate at narrow profit levels and the bleeding of producers to other enterprises such as prime lambs continues.
The 2013-2014 selling season, though officially over, unofficially wraps up in another two weeks. It can be best described as having had a strong early surge in late August 2013 followed by steady price declines through April that bottomed out in May.
The wool selling season 2013-2014 ended on a quiet note with wool prices in U.S. dollar terms were relatively flat in June after seen a erratic May
The flux performance in US exchange rate last week against the Australian dollar impacted the market and resulted in significant price dips across all selling centres. Also movements in the currency puts a bit of ambiguity out in the wool market, in particular for the traders because if they buy it this week and next week the currency is up or down it means they have cheap or expensive wool. The sudden fluctuations in the market had a big impact on trade.
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.
South African wool prices reached new high at this week's national sale due to good demand coming from the Chinese and European markets, Cape Wools said on Wednesday.
Cape Wools' Merino indicator gained 2.3-percent to close the day at R118.30/kg (clean). This is a 16-percent increase on the opening sale and is up 5.2-percent on the corresponding sale last year said, spokeswoman Lizelle Delport
Delport said wool receipts were up six percent compared with the corresponding period last season.
