The Australian wool market experienced a welcome boost this week after four weeks of successive losses, with prices for most merino types recording increases. Stylish, well-measured and fine merino fleece and skirting lots continued to attract keen buyer competition. Sales opened on Tuesday, with only Melbourne and Sydney in operation. From the onset, it was immediately apparent that buyer sentiment had improved and as a result, prices increased across all microns.
The national offering was 23,371 bales, down 1,967 or 7.8% from last week. The national clearance rate improved to 91% from 81% last week.
On Tuesday, the EMI gained 11 AUD cents to 1,181 AUD cents a kg, or up 7 US cents at 760 US cents. Wednesday recorded a minor loss of 2 AUD cents but was up 4 US cents. Thus, the EMI was up 9 AUD cents to close the week at 1,179 AUD cents a kg clean or 764 US cents a kg, up 11 US cents.
AWEX reported turnover of wool sold was AUD$27.79m, taking the season’s total to AUD$1,831.86m.
In Sydney, the one-day sale on Tuesday produced good price gains across all microns as buyers sought stylish lots with favourable additional measurements. Merino skirtings gained as demand for well-measured, fine (<17.5 µm) MF4 lots improved. The crossbred sector eased while finer locks were in favour, with broader locks and other oddment categories remaining at last week’s level. The Northern Regional Indicator gained 16 AUD cents to 1,230 AUD cents a kg clean, with the clearance rate improving to 95% – as against 82% last week.
In Melbourne, the merino fleece segment gained on day one with well-measured, stylish lots in good demand. Offerings on day two were dominated by lower yielding, broader (<19.5 µm) lots, which saw prices go down. Stylish, low VM (<3%) merino skirtings were lifted on day one, with a further rise on day two. Crossbred lots fell on day one, while well-prepared lots maintained this value on day two but buyer disinterest in poorly prepared lots resulted in poor clearance. Oddments lost ground on day one as lower yielding, high VM lots dominated the offering before stylish locks, crutching lots and stains gained on day two. The Southern Regional Indicator inched up 5 AUD cents at 1,147 AUD cents a kg clean, with the clearance rate improving to 89% – as against 81% last week.
In Fremantle, the single-day sale on Wednesday saw finer microns in good favour. The 18 µm gained a lot and the 18.5 µm gained about half of the former. Meanwhile, 19 and 19.5 µm were lifted but broader microns fell. Low VM (<3.0%) fine (<18.5 µm) merino skirtings also saw good gains. Locks lost, with other categories of oddments maintaining last week’s levels. The Western Regional Indicator eased 9 AUD cents to close the week at 1,237 AUD cents a kg clean, amid an improved clearance rate of 93% from 81% last week.
Next week, the national offering is expected to be lower at 21,960 bales. Sydney (Tuesday) and Fremantle (Wednesday) will again have one-day sales. Melbourne will sell over both days.
