The Australian wool market continued to retract this week, with general overall losses recorded across the auction centres. The national offering was smaller at 24,974 bales and stimulated buyer demand which was directed towards finer, stylish well-measured lots. Although this produced small price gains in some finer microns, the larger selection of lower-style lots with unfavourable additional measurements lost ground, contributing to the fall in the EMI.
On Tuesday, the EMI lost 12 AUD cents to 1,280 AUD cents a kg or 21 US cents at 807 US cents. Wednesday continued with losses, but at a slower pace, losing 8 AUD cents or 5 US cents. Thus, the EMI lost 20 AUD cents to close the week at 1,272 AUD cents a kg clean or 802 US cents a kg, down 26 US cents. The national clearance rate was 85% as against 77% in the single-day operation last week. Overall numbers continued to fall on the previous season, compared to the same time last year. There were 152,758 fewer bales put through the auction system, down 10.9%. The AWEX reported turnover of wool sold at AUD$28.76m, taking the season’s total to AUD$1,756.32m.
In Sydney, the small offering on day one of well-measured, stylish (MF4 & MF5), fine (≤18.5 µm) merino fleece lots was in good demand. Poorer style and broader lots lost, and this tone continued on day two. Merino skirtings tended to remain unchanged compared with last week, although poorer style lots weakened on the day. The limited selection of crossbred lots trended lower on both days. Oddments eased on day one but maintained their level on day two. The Northern Regional Indicator lost 18 AUD cents to 1,307 AUD cents a kg clean with a clearance rate of 87%, as against 76% last week.
In Melbourne, healthy competition was seen on day one and well-measured MF5 merino fleece lots maintained their value with some finer lots (≤ 17.5 µm) up. On day two, the market firmed early on but softened as the sale progressed. The 16.5 µm and 20 µm microns gained ground, with losses reported in all other microns. High (>6%) VM merino skirting lots were out of favour, losing on day one, while day two saw mixed results with further falls for high VM lots, but price gains were seen for MF4, low-VM lots. The crossbred sector weakened on day one, with clip preparation impacting day two prices heavily. Locks lost on both days while other categories tended to be firm on both days. The Southern Regional Indicator fell 20 AUD cents at 1,250 AUD cents a kg clean with a clearance rate of 84%, as against 88% last week.
In Fremantle, nearly 20% of the merino fleece offering was withdrawn prior to sale on day one. The remaining lots were sold lower than the previous week. Day two saw mixed results in the fleece sector despite a 24% withdrawal rate. Finer (≤18.5 µm) merino skirtings eased with broader lots (>19.0 µm) dropping on day one. Finer (≤18.5 µm) skirtings gained on day two with other descriptions unchanged. The oddment sector was unchanged on day one and lifted slightly on day two on the back of reduced supply. The Western Regional Indicator moderated 12 AUD cents to close the week at 1,358 AUD cents a kg clean, with a higher clearance rate of 86% as against 69% last week.
Next week, the national offering is expected to increase slightly to 25,554 bales. Due to reduced volume, Sydney will hold a one-day sale, selling on Wednesday. Melbourne and Fremantle will sell on Tuesday and Wednesday.
A two-day sale is scheduled for next week with 31,517 bales on offer across all three centres.
