The Australian wool market deteriorated further this week, as prices continued to decrease across the country. With 11.8% of the offering withdrawn prior to sale, the total national offering was down to 25,338 bales. Buyer demand waned as the sale progressed, resulting in continual price reductions. Nevertheless, good-style wools and those with good additional measurements were still in good demand, and these wools were the least affected by the falling market. The large numbers of lower-style wools and those with poor additional measurements, received less support, thus pushing prices down.
On Tuesday, the EMI eased 17 AUD cents to 1,208 AUD cents a kg, or down 21 US cents at 779 US cents. The losses continued on Wednesday, accelerating to 38 AUD cents or 26 US cents. Thus, the EMI lost 55 AUD cents to close the week at 1,170 AUD cents a kg clean or 753 US cents a kg, down 47 US cents.
AWEX reported turnover of wool sold was AUD$25.83m, taking the season’s total to AUD$1,804.07m.
In Sydney, the only sale on Wednesday saw the market slip further. Finer (< 18.5 µm) microns fell while broader microns lost substantially. The merino skirting sector trended lower, while the crossbred and oddment categories lost ground. The Northern Regional Indicator declined 45 AUD cents to 1,214 AUD cents a kg clean with an improved clearance rate of 82%, as against 72% last week.
In Melbourne, day one saw buyers continue to focus on fine (< 18.5 µm), well-measured stylish fleece lots, with the fine and broader microns losing – the latter slightly higher. Day two saw further price falls across all microns. Merino skirtings followed the fleece sector on both sale days, with finer low VM (< 2%) lots easing on day one and more on day two. Broader lots with higher VM fell on day one and further on day two. Well-prepared crossbred lots maintained last week’s levels, while poorly prepared lots were heavily discounted or were passed in on day one with the 28 µm dropping on day two. The oddment sector weakened on day one and saw mixed results on day two. The Southern Regional Indicator plunged 62 AUD cents to 1,142 AUD cents a kg clean with a clearance rate of 81%, as against 77% last week.
In Fremantle, the single sale on Tuesday continued the previous weeks’ trend as prices fell across all microns, with the finer microns less affected. Prices paid for the small merino skirtings on offer were determined by fibre diameter, with finer (≤ 17.0 µm) lots unchanged and broader lots cheaper. All oddments categories were cheaper. The Western Regional Indicator fell 64 AUD cents to close the week at 1,246 AUD cents a kg clean, with an improved clearance rate of 81%, compared to 70% last week.
Next week, the national offering will rise slightly to 25,660 bales. Due to limited volumes, both Sydney and Fremantle will have one-day sales: Sydney selling on Tuesday and Fremantle selling on Wednesday. This is designed to avoid Melbourne selling in isolation, which will sell over both days.
