Flux in currency created uncertainty in wool market

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.

The Western Market Indicator (WMI) fell by 38 cents a kilogram during the week to finish up at 1109c/kg. While the Eastern Market Indicator lost 27c/kg to close at 1088c/kg.

It was the first time prices for 21 micron dropped below 1200c/kg.

There were 50,790 bales on offer, a significant jump on the week before with 44,935 up for sale.

Growers reacted to the falling market last week with pass-in rates in Fremantle reaching 36.2 per cent.

But Primaries wool technician Greg Tilbrook said that there was business done last Friday following the auctions, which he hoped would transfer into more sales this week.

They have been trading around 1220c to 1250c/kg for 21 micron, last week was the first week since the pre-Christmas sales that levels for 21 micron wool had dipped below 1200c/kg and now it has just dipped below that price.

But wool with good specifications will be well required in the coming market.