Wool prices significantly increased in US dollar terms in second week of July 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.

It is also interesting to note that wool prices significantly rose in Australia in all currency terms. A rebound in the Australian dollar compared with the U.S. dollar did not depress demand. As a consequence, the Eastern Market Indicator (EMI) gained 3.2% in US dollar terms or 24 cents at 769 cents.  Nevertheless, US dollar prices are still below their level two months ago. Euro prices were slightly up with the Australian dollar declining against the European currency. In Australian dollar terms, the Western indicator rose 1.3% or 12 cents at 916 cents per kilo clean.

Demand was not depressed by prospect of larger offer in the next week when sales of fine and super fine wool will be held in Newcastle, again attracting very good demand from Italy.