It was a better week for the Australian wool markets with a generally positive tone all round. Although price fluctuations continued this week, gains were seen across all micron prices. Demand was concentrated on > 18.5 micron lots and pushed value of these wools upwards for the week in the Eastern markets.
This week's offering was 28,149 bales, 8,872 fewer than last week. The overall clearance rate improved to 92% from 62% recorded in the previous week. Flock numbers and wool cut reductions arising from the ongoing difficult seasonal conditions across much of the country have seen a significant reduction of 19.1% in the number of bales offered this season compared to the same time last season.
The EMI finished the week at 1,543 a kg clean, up 32 cents or up 26 cents at 1,041 US cents a kg. On Wednesday, the EMI gained 18 cents to 1,529 a kg clean and up 16 cents at 1,031 US cents a kg. On Thursday, the EMI further gained 14 cents or up 10 US cents a kg.
The AWEX reported turnover of wool sold of AU$45.83m, taking the season’s total to AU$512.71m. Buyers for China were dominant, supported from buyers for Europe and India.
In Sydney, price gained across all merino and crossbred wool on both sale days. Consistent buyer demand across all types and descriptions drove the increases which met grower price expectations as more than 90 % of the offering was sold on each day. Merino skirtings gained across all types and descriptions for the week and crossbreds were dearer. Most categories of oddments trended dearer. The Northern Regional Indicator gained 29 cents to 1,567 a kg clean with overall clearance rate at 94% as against 83% in previous week.
In Melbourne, both sale days opened strongly. On Wednesday, demand eased for lower style wool and was steady for < 18 microns and up for 18.5-22.5 microns. On Thursday, the market remained strong with further gains across all microns. Strong demand was a feature of the merino skirtings this week, with good and best styles keenly sought by buyers. Well prepared crossbred lots were also in high demand this week, pushing prices up. The Southern Regional Indicator finished at 1,527 a kg clean, up 34 cents from week ago with clearance rate of 94% as against 66% in the previous week.
In Fremantle, sales were characterised by high pre-sale withdrawal rates, with 50.5% on Wednesday and 14.2% on Thursday. Prices rose across all microns on both days as buyers sought to secure what they could of the remaining limited offering. Merino skirtings performed strongly on Wednesday, again due to limited availability, and strengthened further on Thursday. Oddments market was mixed. The Western Regional Indicator jumped 43 cents to 1,653 a kg clean with improvement in clearance rate at 87% as against 59% in the previous week.
Next week, 40,056 bales are rostered for sale across Sydney, Melbourne and Fremantle.
