9 November 2012
Wool prices began eventually dropping this week in Australia and South Africa . Our weekly report delivers a comprehensive view of wool prices in Australia, with a long list of micron types in A$, US$ and euro terms. Historical charts are also available, such as downloadable historical data. A glimpse on the New Zealand and South African markets is provided.
Wool prices heavily fell this week after rallying for the past five weeks.
Australia's benchmark indicator lost 43 Australian cents at 1,003 cents per kilo clean, dropping 4.11%.
Prices were down 3.76% in US$ terms with the same Eastern Market Indicator (EMI) closing at 1,044 cents.
The recent jump in prices was triggered by concerns about potentially tight supply later this year.
The rally actually resulted in wool farmers offering much larger quantities for sale.
In the three coming weeks, offering will reach about 46,000 to 50,000 bales per week, a high level by recent experience.
Prices may therefore be expected further tumbling in coming period.
In South Africa, the benchmark indicator slided 3.9% in rand terms after surging 17% in five weeks.
Over the longer term, wool prices did not strongly surge if compared with the cotton prices in the past five years, as reflected by our below chart (from IMF statistical data).