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 Wool's EMI rebounds 2.4pc after slump 

Wool's EMI rebounds 2.4pc after slump

12 Jun, 2009 12:59 PM
WOOL prices have rebounded this week after two week’s of falling prices.

The eastern market indicator (EMI) rose by 18c/kg (2.4pc), to 771c/kg.

That helps recover some of the ground lost last week, when the EMI fell by 3.9pc, and by 3.5pc in the previous week.

But WA didn’t share in this week's upsurge, with Fremantle’s western indicator easing marginally.

Among the regional indicators:

• Sydney’s northern indicator rose by 16c/kg, to 791c/kg.

• Melbourne’s southern indicator, rose by 19c/kg, to 753ckg.

• Fremantle’s western indicator fell by 2c/kg, to 767c/kg.

The Australian Wool Industries Secretariat says the wool market finished 1.5pc higher on average nationally, after allowing for the western indicator.

The lift in the EMI came about despite a turnaround in the $A, which started rising again after its brief slump last week against the $US, reaching US 80.9c on Thursday.

As a result, the EMI, when expressed in US terms, rose by more than the EMI at auction - prices for China and other customers trading in $US lifted by 3.5pc.

AWEX says this week's was the smallest three-centre national offering in 12 months, and one of the smallest on record, with just under 31,324 bales offered in three centres.

AWEX reports solid rises from all microns in the eastern states, with gains of 20 to 30 cents when compared to last week’s levels.

In Sydney and Melbourne, most of the gains came on the first day of selling.

At Fremantle’s small two-day sale, on the first day the market took a cue from the previous week’s sales in the eastern states and fell sharply. Most microns were down around 20 cents clean when compared to the previous Fremantle sale held a fortnight earlier.

Renewed interest on Thursday, however, saw a final day WA rally - all fleece types were pushed 20 to 25 cents higher.

Next week, there’s another small, two-centre offering of just under 20,000 bales nationally, with a two-day sales in Sydney, Melbourne has a one-day sale and Fremantle isn’t selling.

AWEX says rthe expected national offering next week is only marginally higher than an offering held 12 months ago which was the smallest national offering in AWEX history.

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Q: Should the Senate reject the federal Government's proposed Emissions Trading Scheme (ETS) legislation?

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