The Australian wool market saw a more settled week but a solid one, with prices levelling out across the three selling centres. This was despite a larger national offering of 30,135 bales, up 38% compared with the previous week. The EMI closed at 1,542 Aus cents a kg clean, up 7 cents, but down 9 cents at 1,047 US cents a kg. Merino skirtings enjoyed a strong week with keen competition pushing prices up at all three centres. The national clearance rate was 90% – a tad lower than the 93% rate of the previous week.
On Wednesday, the EMI edged down 4 cents to 1,531 Aus cents a kg clean and down 7 cents at 1,049 US cents a kg. On Thursday, the EMI recovered its previous losses by rising 11 cents to 1,542 Aus cents a kg clean and down 2 cents in US dollar terms to 1,047 cents a kg.
The AWEX reported the total turnover of wool sold at Aus$47.09m, taking the season’s total to Aus$377.78m.
Buyers’ lists were well and truly dominated by the Australian-based trade exporters this week. With the prevailing lower pricing levels, overseas users were more inclined to lock into forward contracts rather than use their indent channels. Wool growers continued to exert pressure on the volumes available at auction. Sellers who chose to withdraw or pass in their wool continued but diminished as this week’s auction saw 8.6% of the initial rostered quantity withdrawn from sale prior to sales commencing.
In Sydney, price increases were witnessed across all microns on both sale days. On Wednesday the greatest gains occurred in the 18, 20 and 21 micron ranges, with further smaller rises occurring on Thursday. Merino skirtings ended Wednesday dearer and rose further on Thursday. The broader crossbreds eased on Wednesday before regaining on Thursday. Oddment lots tended to gain in value. The Northern Regional Indicator gained 36 cents to 1,570 Aus cents a kg clean with an overall clearance rate of 92% – same as the previous week.
In Melbourne, the market saw mixed results on Wednesday with the finer microns either maintaining price levels or increasing their value. All broader merino and crossbred microns fell. Thursday saw modest price gains across all microns except the 30 lots which fell further. The merino skirtings market was positive with solid demand for best style finer lots with favourable additional measurements. Crossbred lots lost ground while the oddments market was mixed. The Southern Regional Indicator closed at 1,524 Aus cents a kg clean, up 12 cents a week ago, with a clearance rate of 88% as against 96% in the previous week.
In Fremantle, the sale on Wednesday maintained the levels of the previous week, before gaining across microns on Thursday. The limited supply of merino skirtings attracted strong competition with some lots gaining. The low volume of oddment lots gained on Wednesday but were mixed on Thursday. The Western Regional Indicator gained 18 cents to 1,643 Aus cents a kg clean with a clearance rate of 90%, as against 94% in the previous week.
Next week, 29,290 bales are currently rostered for sale across Sydney, Melbourne and Fremantle.
Next week’s offering has been increased to 31,107 bales, with all three centres in operation.
