Wool prices stopped falling in Australia and South Africa
Wool prices rose in Australia and South Africa this week, bringing some renewed optimism to markets. The level in demand remains very low, however, while currencies continue rising against the American dollar in the Southern Hemisphere.
Egytex News Desk
Egytex
Australian wool prices rose for the first time in eleven weeks in Australia, the Woolmark reports.
The Eastern Market Indicator (EMI) was up two Australian cents or 0.3% at 781 cents per kilo, reflecting an increase of four cents in the Northern market at 796 cents while the Southern indicator was up two cents at 768 cents.
Prices even rose 13 Australian cents in the Western part of the country, reaching 752 cents in Fremantle.
The Australian dollar showed some strong volatility this week, finally closing above last Friday level compared with the US dollar.
The EMI rose 4 US cents or 0.7% to 566 cents per kilo clean. Unusually, buyers apparently did not pay attention to the level in the Australian dollar.
Demand could remain relatively strong in the next week with sales of superfine wool taking place in Newcastle.
With only three weeks remaining before the three-week Christmas recess, processors are expected covering their short-term needs.A strong demand for quality wools was last Wednesday observed in Port Elisabeth. Cape Wool indicator only declined 0.3% at 28.74 rand per kilo clean although the local currency sharply rose, again.
In US$ terms, the same indicator rose 21 cents or 5% at 440 cents per kilo, however. In New Zealand, wool prices continued falling after the kiwi dollar again increased 1.8% in only seven days.
Compared with previous week, the strong indicator declined 3 cents in local currency terms while the medium indicator rose 7 cents.
The fine indicator (18 to 24 microns) even fell 43 cents from latest sales on November 6th (-0.8% in US$ terms).
From the Egytex news archive, first published on 25 November 2003. Figures and names are as reported at the time.
