The Australian wool market sales didn’t finish this week as well as it started, but it did close in the black, with virtually all gains going to the Merinos. The offerings progressively improved in comparison with last season. Price rises and high clearance rates were seen in all three centres on day one before easing on day two. The Fremantle market continued to perform strongly with some Western microns above those of the Eastern centres. The national offerings were up 6% to 36,110 bales, of which, 93% was the clearance rate.
The EMI finished the week 19 cents up at 1,574 a kg clean or up 2 cents at 1,070 US cents a kg. On Wednesday, the EMI jumped 25 cents to 1,580 a kg clean or 13 cents to 1,081 US cents a kg. On Thursday, the EMI eased 6 cents or 11 US cents a kg. The AWEX reported turnover of wool sold at US$59.83m, taking the season’s total to US$786.73m.
Most of the volatility stemmed from the very short supply chain with prompt demand being satisfied by hand to mouth buying and processing. Six to eight weeks from auction to go into recess is now the general routine for wool products from auction sale in Australia to on shelf at retail for most of China delivery. Chinese indent buyers and a few of the top makers provided strong support but their buying activity dropped off on the last day somewhat as the day one saw levels rise above their reach and that of their clients ability to convert.
In Sydney, sales saw a positive start with large upward price movements across all microns. Solid buyer competition was evident across all types and descriptions on day one before the market softened on day two with Merino losing. The <17.5 µm were less affected, particularly those with best style and favourable additional measurements. Broader microns eased with low strength and high midbreak lots most affected. A small selection of Crossbred lots were unchanged from last week, while finer lots maintained that level on day two. Merino skirtings increased on day one while some finer best style lots gained on day two, most skirting lots remained unchanged. The oddment sector remained at last week's levels. The Northern Regional Indicator finished at 1,610 c/kg clean up 27 cents and the Northern Merino Carding Indicator lost 2 cents to 1,053 c/kg clean with a 6% pass-in rate. The Northern Regional Indicator finished up 27 cents to 1,610 a kg clean with overall clearance rate at 93% as against 89% in previous week.
In Melbourne, sales mirrored Sydney with price gains across all microns on day one. The market opened day two with early discounts before firming as the sale proceeded. Lots with low strength and high midbreaks were discounted during the day. Finer (<18.0 µm) Merino skirtings with <3% VM rose on day one with broader high VM lots unchanged. Mixed results were seen on day two with finer lots gaining while broader lots losing. A small selection of crossbreds maintained the previous week's levels. Most oddment categories closed at similar levels to last week. The Southern Regional Indicator finished the week up 17 cents at 1,551 a kg clean with a clearance rate of 94% as against 82% in the previous week.
In Fremantle, Merino microns gained on day one, before losing on day two. Merino skirtings enjoyed strong competition and saw gains across the board on day one, before easing on day two with high VM lots (>4%) most affected. Day one saw all categories of oddments dearer, lambs up with locks, stains and crutching up. Locks eased on day two with crutchings and lambs gaining further ground. The Western Regional Indicator gained 15 cents to close at 1,677 a kg clean with a rise in the clearance rate to 90% as against 74% in the previous week.
Next week 40,726 bales are rostered for sale across the three centres.
