The Australian wool market saw trade turn fairly bullish entering this week’s sale, as good enquiries emerged. However, the market softened a bit at the close, but was generally termed as a good week. Price rises experienced in the previous week encouraged more sellers to enter the market, pushing the national offering up by 26% to 37,385 bales. Of these, 93% were sold – the same proportion seen last week.
Prices of all types and descriptions recorded large gains but saw a normal bearish factor of a strongly appreciating Australian Dollar against the US Dollar as a potential roadblock. Nevertheless, this was inconsequential as the immediate demand took charge of the market direction and forced prices upward.
The EMI finished the week 49 cents up at 1,594 AUD cents a kg clean or up 46 cents at 1,104 US cents a kg. On Wednesday, the EMI jumped 49 cents to 1,594 AUD cents a kg clean or up 36 cents at 1,094 US cents a kg. On Thursday, the EMI was flat or up 10 US cents a kg. The AWEX reported turnover of wool sold at US$63.65m, taking the season’s total to US$678.15m.
The 4% price gain on day one was indicative of a wool market on tenterhooks. Auctions were highly reactionary to immediate demand, both to the positive and negative. Buyers, local and overseas hesitated a heavily exposed open position and executed purchases promptly and it was apparently without price limitations.
In Sydney, price rises were seen across all microns on Wednesday and the market consolidated on Thursday with smaller price gains in the finer and falls in the broader microns. Merino skirtings enjoyed price rises with buyers favouring the finer micron lots on Wednesday and best style lots on Thursday. Crossbred lots rose on Wednesday while finer crossbred lots continued to trend dearer, and broader lots remained flat. All categories of oddments gained on both days of the sale. The Northern Regional Indicator jumped by 66 cents to 1,626 AUD cents a kg clean and the Northern Merino Carding Indicator climbed 99 cents to 1,086 AUD cents a kg clean. The Sydney pass-on rate was 4.3%. The Northern Regional Indicator surged 66 cents to 1,626 AUD cents a kg clean with an overall clearance rate of 96%, as against 92% in the previous week.
In Melbourne, the market strengthened as the sale progressed on day one, with buyers keenly seeking best style lots with favourable additional measurements. Thursday saw the market stabilise with minor price decreases in most microns. Good style lots with favourable additional measurements and higher yields were keenly sought. The merino skirting market was strong on Wednesday but softened on Thursday as buyers were reluctant to bid on high VM lots. Best style low VM lots maintained their value. Well prepared crossbred lots performed handsomely on Wednesday and held their levels on Thursday. Oddments improved during the week. The Southern Regional Indicator closed at 1,567 AUD cents a kg clean, gaining 40 cents, with a clearance rate of 95% as against 94% in the previous week.
In Fremantle, the market continued to enjoy strong demand, with the finer merino fleece rising on Wednesday. However, demand softened on Thursday resulting in price falls across all microns. Nearly a quarter of fleece lots were passed in. Finer merino skirtings gained on Wednesday and Thursday. All categories of oddments were dearer Wednesday and rose again on Thursday. The Western Regional Indicator added just 15 cents to close at 1,687 AUD cents a kg clean with a slight worsening of the clearance rate at 87%, as against 92% in the previous week.
Next week, 36,497 bales are on offer with all three centres operating.
