As the national offering shrank to 28,273 bales in the two-day sales this week, buyers were rushing to secure their required quantities amid strong competition. This strong demand saw the EMI rebound by 54 cents to 1,887 Aus cents a kg clean. Wool growers took advantage of the higher prices, with the national clearance rate at 92%. In US dollar terms, the EMI closed this week 46 cents up at 1,307 US cents.
On Wednesday, the EMI gained 31 cents to 1,864 Aus cents a kg clean and up 31 cents at 1,292 US cents a kg. On Thursday, the rise was slower at 23 cents to 1,887 Aus cents a kg and by 15 cents in US dollar terms to 1,307 cents a kg.
The AWEX Eastern Market Indicator, after losing 159 cents over the previous two weeks, added 54 cents for the series, to close at 1,887 cents. After recording the highest national passed in rate of the previous two seasons of 83% last week, the price rises helped to reduce the rate to 92% this series. The skirtings followed the lead of the fleece, recording sharp increases. After the large losses experienced at the previous sale, the crossbred sector also managed to bounce back. The entire crossbred range generally rose by 40 to 60 cents. The main buyer focus was on the better prepared lines and these wools saw great increases. The oddments also recorded a strong positive movement; locks in particular came under intense pressure, as multiple exporters competed on a limited quantity, pushing prices up.
Sydney saw strong demand during both sale days. Gains were seen on Wednesday across all microns, with a further rise on Thursday. Best and good style lots were keenly sought, including those with low staple strength (<30 N/ktex). Merino skirtings, crossbred and oddments strengthened. The Northern Regional Indicator gained 24 cents on Wednesday and another 16 cents on Thursday to end the week at 1,909 Aus cents a kg clean with a clearance rate of 95%, as against 74% in the previous week.
The Melbourne sale opened Wednesday strongly with prices increasing as the activities progressed. It was another strong day of selling on Thursday, which saw price increases of up to 82 cents for the week. The largest gains were seen in the 18.5 and 19.0 microns. Merino skirtings, crossbred and oddment lots also strengthened. The Southern Regional Indicator more than regained its previous losses by rising 64 cents to 1,874 Aus cents a kg clean with a clearance rate of 91%, as against 78% last week.
The Fremantle sale was a single-day auction that saw the market turn around amid strong competition among buyers, particularly for lots < 19.5 µm. These microns gained upwards of 70 cents. Low VM (< 3%) skirting lots were also dearer and oddments were up. The Western Regional Indicator surged 55 cents to 1,991 Aus cents a kg clean with a clearance rate of 87%, as against 51% in the previous week.
Next week, Fremantle will be on a one-week recess with only Sydney and Melbourne in operation. The National offering reduces to 23,619 bales. If the price gains do not attract more sellers to the market, this will be the smallest offering in over two years.
