Soft trading in Aussie wool market

Australian Wool Industries Secretariat Inc (AWIS) releases wool sale report for the week ending 25th November 11.

The Australian Wool Exchange (AWEX) Regional Indicators finished 0.7% lower, on average, at sales in Newcastle, Melbourne and Fremantle this week when the US exchange rate fell by 3.7%.

It was another market that finished in a different manner to the way it started. All Regional Indicators were down in both currencies on their first days of selling, with the fall in A¢ partly buffered by the fall in the US exchange rate. The situation reversed on Thursday, when demand was strong from the start, and the Eastern Market Indicator (EMI) rose by 2¢ in US¢ and by 18¢ in A¢.

The fall on Tuesday was not unexpected, given the general global financial concerns and the soft finish the previous week. However, the upturn on Thursday surprised most people, as the global economic outlook was unchanged on Wednesday night. There were trade reports of inquiry from China and Italy on Wednesday night.

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