The Australian wool market continued to see soft demand this week, but currency movement had a big effect on price indicators. The volume of the national offering also continued to decrease after 10.3% was withdrawn prior to sale, with just 22,904 bales on offer. The national clearance rate fell to 74% as against 85% in the previous week. The offering was dominated by lower yielding, lower-style wools, while the main buyers focused on better-style wools which were in limited supply.
With this, just over 1.3 million bales have been offered for sale so far this season, 10% fewer than the corresponding time last year. AWEX reported turnover of wool sold was AUD$21.92m, taking the season’s total to AUD$1,778.23m.
On Tuesday, the EMI lost 13 AUD cents to 1,259 AUD cents a kg, or up 10 US cents at 812 US cents. Wednesday brought further losses of 34 AUD cents or 12 US cents. Thus, the EMI lost 47 AUD cents to close the week at 1,225 AUD cents a kg clean or 800 US cents a kg, down 2 US cents.
In Sydney, the one-day sale on Wednesday mirrored Melbourne and Fremantle with price falls across all microns. Merino skirtings lost ground with finer lots (< 19.0 µm) down and broader lots lower. The crossbred sector weakened with finer (< 26.5 µm) lots most affected. All categories of oddments trended lower. The Northern Regional Indicator moderated 48 AUD cents to 1,259 AUD cents a kg clean with a clearance rate of 72%, as against 87% last week.
In Melbourne, only 5,900 bales were offered on day one with finer MPGs (< 17 µm) losing a few cents. Broader microns lost significantly while poorer-style lots with higher VM and unfavourable additional measurements remained out of favour. The fleece sector softened further on day two with the 16.5 µm lots down significantly and the other microns recording smaller losses. Day one saw the finer merino skirtings maintain last week’s levels with the broader lots falling. The skirtings market strengthened on day two, with stylish, fine (≤ 17.5 µm) lots gaining marginally. The crossbred sector drifted lower on day one with stylish lots maintaining their ground before stabilising on day two. The oddment market drifted lower on day one with mixed results on day two. The Southern Regional Indicator lost 46 AUD cents at 1,204 AUD cents a kg clean with a clearance rate of 77%, as against 84% last week.
In Fremantle, the fleece market weakened on day one with losses across all microns – the 18 µm down marginally and broader types down substantially. This trend continued on day two with all microns down further. Merino skirtings eased with finer lots most affected. All categories of oddments also eased. The Western Regional Indicator fell 48 AUD cents to close the week at 1,310 AUD cents a kg clean with a lower clearance rate of 70%, as against 86% last week.
Next week, the total offering is expected to increase to 26,328 bales and due to the volume on offer, Sydney and Fremantle will operate on one day only: Fremantle on Tuesday and Sydney on Wednesday. This move will prevent Melbourne from selling in isolation, which will sell over both days.
