It was a roller coaster week for the Australian wool markets, subdued by negative global events. Apparently, the increases of the last three weeks were associated with exporter buying for October shipment.
The week saw an increase of 9,594 bales on offer compared to the previous week, with 33,548 bales of Australian origin on offer. The increase in supply, together with soft buyer demand saw prices drop once again across all three selling centres. All microns lost over 100 cents for the week, with crossbreds falling slower.
The EMI finished the week at 1,511 per kg clean, down 98 cents or down 72 cents at 1,015 US cents per kg. Growers were not interested in selling at these low price levels, with only a 67% clearance rate seen this week against 92% in the previous week’s sale. On Wednesday, the EMI lost 51 cents to 1,558 per kg clean and down 41 cents at 1,046 US cents per kg. On Thursday, the EMI fell further 47 cents to 1,511 cents per kg and down 31 cents at 1,015 US cents per kg.
The AWEX reported turnover of wool sold of AU$42.07 million, taking the season’s total to AU$466.88 million. Buyers for China were dominant, with support from buyers for India and Europe.
In Sydney, subdued buyer demand saw prices ease across all microns on both sale days. Lots with low staple strength (<30 N/ktex) and high VM (>2%) were most affected. Growers were not interested to sell at these low levels with 9.2% of offering withdrawn prior to sale on Wednesday and 84% cleared. On Thursday, 13.4% of lots were withdrawn and 61% cleared. All microns and descriptions of Merino skirtings lost ground this week, with the poorer style lots most affected. The oddment market was mixed, with some categories dearer, some unchanged from the last sale and others falling. The Northern Regional Indicator lost 97 cents to 1,538 a kg clean with overall clearance rate at 83% as against 97% in previous week.
In Melbourne, performance mirrored Sydney sales with early price falls on Wednesday continuing through to Thursday. As prices declined, withdrawal increased and clearance rates declined. The clearance rate on Wednesday was 73% and 53% on Thursday, with a significant number of lots withdrawn prior to sale on both days (6.1% & 16.5%). The crossbred lost sharply for the week. Merino skirtings were all easier, lots with poor style and high were most affected. The Southern Regional Indicator fell 100 cents to 1,493c/kg clean. Oddment lots were unchanged on Wednesday but eased on Thursday. The Southern Regional Indicator finished at 1,493 a kg clean, down 100 cents from week ago with a clearance rate of 66% as against 96% in the previous week.
The Fremantle market also softened this week, characterised by high withdrawal and poor clearance rates, especially on Thursday with 23% of lots withdrawn prior to sale and the 50% cleared. Merino fleece and skirtings fell in price across all microns and descriptions. As a result, all Fremantle Merino fleece were nominal. Oddment lots were in low volume and achieved mixed results. The Western Regional Indicator lost 92 cents to 1,610 a kg clean with a lower clearance rate of 59% as against 80% in the previous week.
Next week, 34,174 bales are rostered for sale across Sydney, Melbourne and Fremantle.
