Wool prices significantly climbed in US dollar terms during the last two weeks of October, 2008 in Australia, reflecting very good demand despite the sharp decrease in the American currency. The strength in the euro stimulated demand from Europe, which is expected to continue with sales of excellent qualities at Newcastle.

A rebound in the Australian dollar compared with the U.S. dollar did not depress demand. In fact, as a consequence, the Eastern Market Indicator (EMI) gained 3.2% in US dollars terms or 24 cents at 769 cents.

The US dollar prices are still below their level two months ago, nevertheless. Euro prices were slightly up with the Australian dollar declining against the European currency. The EMI finished up 5  cents (Euro) or 0.9%.

In Australian dollar  terms, the Western indicator rose 1.3% or 12 cents at 916 cents per kilo clean wool. Demand was not depressed by prospect of larger offer in the next few weeks when sales of fine and super fine wool will be held in Newcastle, again attracting very good demand from Italy.