THE US exchange rate is playing havoc with the wool market.
Its volatile performance last week against the Australian dollar, where it rose 1.17 cents on Wednesday and Thursday and then fell by 1.16c on Thursday, impacted the market and resulted in significant price dips across all selling centres. It ended 0.30c lower to close at 89.34c.
There were 50,790 bales on offer, a significant jump on the week before with 44,935 up for sale.
The Western Market Indicator (WMI) fell by 38 cents a kilogram during the week to finish up at 1109c/kg.
The Eastern Market Indicator performed in much the same way and lost 27c/kg to close at 1088c/kg.
It was the first time prices for 21 micron dropped below 1200c/kg.
Growers reacted to the falling market last week with pass-in rates in Fremantle reaching 36.2 per cent.
But Primaries wool technician Greg Tilbrook said there was business done last Friday following the auctions, which he hoped would transfer into more sales this week.
"The movements in the currency puts a bit of uncertainty out there, in particular for the traders because if they buy it this week and next week the currency is up or down it means they have cheap or expensive wool," he said.
"But it is the sudden fluctuations in the market that have a big impact on trade."
Mr Tilbrook said last week was the first week since the pre-Christmas sales that levels for 21 micron wool had dipped below 1200c/kg.
"We have been trading around 1220c to 1250c/kg for 21 micron, and now it has just dipped below that price," he said.
"But we are hoping that wool with good specifications will be well sought after in the coming market as we have heard there is a lot of fault coming through in the wools from the Eastern States catalogues due to the dry conditions over there."