The Australian wool market rebounded this week after suffering losses amid smaller offerings last week. Due to the lack of quantity, Sydney and Fremantle had a one-day sale. Melbourne and Sydney opened proceedings and from the opening lot it was apparent that buyers’ sentiment was greatly improved. Prices moved positively across all microns at all three selling centres, which was welcomed by traders at this week’s sales. The skirtings, crossbred and oddment sectors all trended upwards.
The national offering was smaller compared to last week at 18,828 bales, down 2,273 or 10.8%. The national clearance rate improved to 92.1% from 87.5% last week.
It was a good start on Tuesday with some enquiries emerging from China in the lead up to the sale. Wednesday also started similarly but eased slightly as the day progressed. According to China’s Wool Textile Organisation, the wool textile industry capacity utilisation rate fell 10.5% during Q1 2020. This appears to be above expectations given the current pandemic circumstances.
On Tuesday, the EMI gained 17 cents to 1,172 AUD cents a kg or up 13 US cents at 769 US cents. Wednesday recorded small losses of 2 AUD cents but was up 8 US cents. Thus, the EMI gained 15 AUD cents or 21 US cents to close the week at 1,170 AUD cents a kg clean or 777 US cents a kg.
AWEX reported turnover of wool sold was AUD$22.24m, taking the season’s total to AUD$1,877.85m.
In Sydney, the one-day sale produced price rises across all merino fleece microns amid a small offering of 5,429 bales with 503 bales withdrawn. Buyers sought out fine (<19.5 µm), well-measured, stylish (MF4 & MF5) lots which gained on the day. Fine (<17.5 µm) merino skirtings also gained, with broader lots maintaining last week’s levels. Crossbreds were up while oddments strengthened on last week. The Northern Regional Indicator gained 19 AUD cents to 1,212 AUD cents a kg clean with the clearance rate rising to 96% from 88% last week.
In Melbourne, stylish (MF4) fleece lots with favourable additional measurements rose on day one as the Melbourne sale opened strongly. Day two saw the merino fleece market consolidated with small price movements across all microns. Merino skirtings were lifted on day one as buyers competed for the limited selection of fine (<18.5 µm) MF4, low VM lots and rose further on day two despite lower yielding, high VM lots by a few cents. Well prepared crossbred lots recorded strong gains for the week, while poorly prepared lots either lost or were passed in. Strong competition for MF4 oddments on day one saw further gains for locks, crutchings and stains on day two, with low yielding carbonising lots losing a few cents. The Southern Regional Indicator was up 11 AUD cents at 1,143 AUD cents a kg clean with a clearance rate of 91%, as against 88% last week.
In Fremantle, all merino microns rose on Wednesday’s one-day sale. A small quantity of merino skirtings was either unchanged (<19.0 µm) or eased. All categories of oddments gained up to 40 AUD cents. The Western Regional Indicator jumped 25 AUD cents to close the week at 1,239 AUD cents a kg clean, with the clearance rate rising to 89% from 85% last week.
Next week, an even smaller quantity of 17,136 bales is scheduled to be sold in Sydney and Melbourne. Fremantle will not have a sale next week.
