Australian Wool Market Softens Ahead of Nanjing Conference
The Australian wool market softened this week as a larger national offering met increasingly selective demand ahead of the Nanjing Wool Market Conference. The Eastern Market Indicator (EMI) declined by 21 cents to settle at 1,857 Australian cents per kilogram. In US dollars, the EMI dropped 34 cents to 1,325 US cents per kilogram.
The decline in the EMI was attributed to the Australian dollar weakening by roughly one US cent to 71.33 US cents, which softened the fall in local currency terms. The weekly price report also noted that Chinese buyers approached the week with greater caution, while renewed appetite for inventory replacement from European and Indian mills limited further price weakening.
The low greasy wool supply forecast was identified as a key factor, with season-to-date offerings standing 8.6% below the prior year at 252,452 bales. Despite this week's decline, the EMI remains 513 cents, or 38.2%, above its level 12 months earlier.
The trade attention now shifts to the 37th Nanjing Wool Market Conference, scheduled to begin on Friday, September 18. The conference is expected to bring together industry leaders and experts to discuss market trends and prospects.