The Australian wool sales resumed after a one week recess on a positive note with price gains across the entire offering. All types and descriptions closed at higher levels, despite the absence of big buyers from China.
The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) closed the week at 1,960 cents per kg clean. In US dollar terms, the EMI closed down 22 cents at 1,376 US cents.
On Wednesday, the EMI gained 12 cents to 1,955 per kg clean and down 19 cents at 1,379 US cents per kg. On Thursday, the EMI further gained 5 cents to 1,960 cents per kg but retreated 3 cents in US dollar terms to 1,376 per kg.
AWEX reported total value of the wool sold this week at 82.9 million Aus dollar (AU$2,058 per bale), taking the season total to Aus$2.83 billion Aus dollar (AU$2,172 per bale).
Price movements were strongly influenced by the 2.5% change in the US Exchange Rate since the last day of selling prior to Easter. The closing US Exchange Rate was at an 11 week high on that day, while the closing rate on Thursday was the lowest so far this season.
The final national offering was 43,053 bales and the overall clearance rate was 94%. Sales were held in all the three centres of Sydney, Melbourne and Fremantle this week.
In Sydney, buyers were in positive mood on Wednesday and actively competed for lots across the entire micron and all descriptions. Sellers were keen to meet the market with a clearance rate of 98.9% for the day. Thursday's sale saw further increases in prices. Best and good style lots were in good demand while merino skirtings performed strongly as did crossbred lots. Oddments were also firm. The Northern Regional Indicator rose by 18 cents to 1,997 Aus cents a kg clean and clearance rate of 97%.
In Melbourne, offerings on Wednesday comprised a larger quantity of best style lots with favourable additional measurements compared to previous sales. Buyers sought these lots pushing prices up. Drought affected wools with poorer style and inferior measurements maintained pre-recess levels. On Thursday, premiums were paid for stylish well measured lots, while lower quality lots were discounted. The Southern Regional Indicator closed up 18 cents to 1,939 Aus cents a kg clean with clearance rate of 95%.
In Fremantle, sales was strong this week with buyers actively pursuing finer Merino lots with good style. Finer micron lots gained while inferior types could not attract buying interest and lost ground. Merino skirtings trended up as did oddment lots. The Western Regional Indicator was lifted 28 cents to 2,093 Aus cents a kg clean with clearance rate of 89%.
Going ahead, offerings for the coming three sales are expected to range from 30,719-34,445 bales and 5.4% less than in the same period last year. The forecast progressive difference to Week 47 is -11.9%. For next week, 33,464 bales are rostered for sale in Sydney, Melbourne and Fremantle.
