The Australian wool market finished 2018 on a positive note with an increase across the majority of micron ranges and wool types.
At the final week of sales before the three-week Christmas recess, the Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) rose by 13 cents (0.7%) for the week to close on 1,862 cents per kilo clean on Thursday 13 December. In US dollar terms, the EMI gained 10 cents (0.7%) to finish on 1,346 US cents.
The Australian dollar against the US dollar was unchanged, to close at 72.26 US cents on Thursday.
In local currency terms, although the EMI finished the calendar year 126 cents lower than at the start of the season, it is still 102 cents higher than at the end of the corresponding week last season. It is a similar pattern with the average AWEX Micron Price Guides (MPGs).
AWEX noted that this week’s sales represented the final buying/selling opportunity before the three-week break, and that as this was the last chance for sellers to offer their wool for the
year, quantities were understandably increased, with a total national offering of 46,003
bales, compared to 38,315 bales last week. The clearance rate this week was 92.3%.
Sales were held in Melbourne on Tuesday 11 December and at all three selling centres on Wednesday 12 December and Thursday 13 December. On Tuesday, the EMI rose by 3 cents to 1,852 n cents but in US dollar terms fell by 1 cent to 1,335 US cents. On Wednesday the EMI lifted by a further 7 cents to 1,859 cents and in US dollar terms increased by 7 cents to 1,342 US cents. On Thursday the EMI climbed by 3 cents to 1,862 cents and in US dollar terms lifted by 4 cents to 1,346 US cents.
Analysts noted that the market had a positive week despite the higher quantities available. There were gains across all micron ranges and wool types apart from the fine crossbreds and the oddments.
AWEX reported that with buyers aware that this week was their last major buying opportunity for the year, this resulted in an aggressive buyer sentiment, as they fought hard to secure meaningful quantity. The result was price increases across the entire Merino spectrum, with all types and descriptions enjoying gains. The greatest rises were spread fairly evenly across the Merinos, with the biggest lifts from 17 to 20 microns.
Among the average AWEX MPGs for the Merino fleece types, 16.5 microns rose by 28 cents (1.1%); 17 microns was up by 37 cents (1.5%); 17.5 microns climbed by 35 cents (1.4%); 18 microns increased by 34 cents (1.4%); 18.5 microns lifted by 45 cents (2%); 19 microns increased by 40 cents (1.8%); 19.5 microns gained 32 cents (1.5%); 20 microns increased by 38 cents (1.8%); 21 microns increased by 27 cents (1.3%); and 22 microns rose by 15 cents (0.7%).
The skirtings did not record any significant movement for the week, with prices fluctuating within 10 to 15 cents of last week’s levels.
Crossbred wool of 28 microns and coarser recorded modest increases of 6 to 10 cents. Among the average AWEX MPGs for the crossbred types, 26 microns fell by 8 cents (0.7%); 28 microns lifted by 6 cents (0.7%); 30 microns increased by 10 cents (1.4%); and 32 microns rose by 4 cents (0.9%).
The oddments finished the year with price reductions. Prices for locks, stains and crutchings were generally reduced by 30 to 50 cents. This was reflected in the average AWEX Merino Cardings Price Guide falling by 44 cents, with a decline of 33 cents alone on Wednesday.
AWEX reported that the total value of the wool sold this week was AU$83.8m (AU$1,970 per bale), taking the season total to AU$1.550bn (AU$2,262 per bale). Buyers for China were dominant, with support from buyers for Europe and India.
Sales will resume in the week beginning Monday 7 January (Week 28) with sales at all three selling centres. AWEX said that if quantities dictate that Melbourne requires a three-day sale, Fremantle will sell on Tuesday 8 January and Wednesday 9 January to avoid Melbourne selling in isolation after an extended recess.
