The Australian wool market saw positive price movement across the entire offering this week. All types and descriptions were well sought, despite the much stronger Australian Dollar against the US Dollar. Price results were all in sellers’ favour amidst a more upbeat auction scene which now appears to be lifting out of the gloom that had gripped it during the Q1 of this season.
The EMI finished the week 28 cents up at 1,545 a kg clean or also up 28 cents at 1,058 US cents a kg. On Wednesday, the EMI gained 14 cents to 1,531 a kg clean or up 18 cents at 1,048 US cents a kg. On Thursday, the EMI further gained 14 cents or up 10US cents a kg. The national offering were down 16% to 29,760 bales, of which, 93% were sold as against 85% last week.
The AWEX reported turnover of wool sold at $48.93 million, taking the season’s total to $614.50 million.
With global economy setting to resolve itself, most signals were swinging to a more positive outcome. Most players were hopeful that the early autumn sales produced the expectations that consumers were renewing their spending, particularly for the discretionary luxury spend area of retail that wool sits in. This week, Australian trading houses dominated the buying activity, but significantly, the focus of China’s largest top makers was stronger than it was in the past month or so. This perhaps indicates that some of the backlog is clearing at the top to the spinning stage where cash flows have been restricted due to delays in the uptake of wool top contracts.
In Sydney, the single day sale this week witnessed strong buyer demand across all microns with positive price movements. The gains in the 17.5 µm and 18 µm were at the lower end of the scale with the 21 µm at the higher end. Merino skirtings also gained while the finer crossbred microns maintained last week's levels with broader losing up. Oddments remained unchanged from the previous sale. The Northern Regional Indicator rose 15 cents to 1,560 a kg clean with an overall clearance rate of 92%, compared to 89% in the previous week.
In Melbourne, strong buyer support was clearly evident on Wednesday as Merino fleece lots with < 1% VM, high strength and low midbreaks were keenly sought after. The momentum was maintained on Thursday with further gains across all microns, with the largest gains seen in the finer end of the range. Low VM (< 3%) Merino skirtings were well supported, gaining on the week. The crossbred sector performed well and recorded gains for finer lots, while the oddments sector was mixed on Wednesday before strengthening on Thursday. The Southern Regional Indicator closed at 1,527 a kg clean, regaining 27 cents with a clearance rate of 94% as against 85% in the previous week.
In Fremantle, the performance was strong this week with gains across the Merino fleece microns on Wednesday and Thursday. High clearance rates were a feature of this week's sales with much of the offered lots sold. Merino skirtings were also in favour this week while oddment lots were dearer on Wednesday, before locks and crutchings eased on Thursday. Stains were the exception with higher gains. The Western Regional Indicator added a handsome 51 cents to close at 1,672 a kg clean with improvement in clearance rate at 92%, as against 80% in the previous week.
Next week, the offering increases to 39,446 bales with all three centres operating.
