This was a lacklustre sort of week for the Australian wool markets but the biggest take away was that the offerings continued to improve. Nevertheless, it was a tough week for auction sales.
The EMI retreated 25 cents to 1,530 a kg clean. A smaller national offering of 37,827, down 471 bales on last week, has contributed to an 11.2% year-on-year reduction in this seasons offering to date. Woolgrowers continued to hold on to their wool at this level with the national clearance rate of 86% contributing to a year-on-year rates of 94%.
On Wednesday, the EMI fell 16 cents to 1,539 a kg clean or 14 cents to 1,043 US cents a kg. On Thursday, the EMI fell further 19 cents or 13 US cents a kg. The AWEX reported turnover of wool sold at AUD$54.03m, taking the season’s total to AUD$895.47m.
Sydney was a softer market this week with prices across microns dipping on both sale days. Lots with favourable additional measurements and best style were less affected. Merino skirtings eased with low VM (< 2.5%), good strength and low midbreak lots finishing at the low end of that range. Crossbred lots also eased on the week while oddment lots maintained last week's levels on day one before gaining some ground on day two. The Northern Regional Indicator finished at 1,561 a kg clean down 30 cents with overall clearance rate at 87% same as in previous week.
In Melbourne, market continued its recent trends, with early price falls on day one prompting low clearance rates and encouraging greater buyer competition. Finer lots (< 17.5 µm) were in favour with small price falls on day one, followed by some modest price gains on day two as buyers sought out well measured lots with best style. Broader Merino lots (>18.0 µm) with inferior style, low strength, high midbreaks and higher levels of VM were either discounted or cleared at lower price. Merino skirtings followed the Merino fleece trend with stylish, well measured, finer lots in favour. Poorly prepared crossbred lots contributed to a softer crossbred market with many lots uncleared. The Southern Regional dropped 21 cents at 1,511 a kg clean with clearance rate at 87% the same as in the previous week.
In Fremantle, the pattern was the same this week with the market losing ground, although the 21 µm MPGs bucked the trend. The finer MPGs (<19.5 µm) all lost for the week. Merino skirtings lost on day one before finishing day two unchanged. Locks increased on day one while all other oddment categories eased, before consolidating on day two. The Western Regional Indicator lost 15 cents to close at 1,640 a kg clean with some improvement in the clearance rate at 81% from 76% in the previous week.
Next week, 41,274 bales are on offer across the three selling centres.
