The Australian wool auction in the final sale before the three-week Christmas recess saw handsome gains across centres as buyers sought to fill orders in view of a reduced offering. Strong upward trends were evident in the merino, skirting and crossbred sectors. The oddment market was slightly softer, particularly in Melbourne. The week was full of positive news that the season has seen. The US and China came to some sort of understanding over their trade dispute. The election in UK’s result has forged the path for pushing Brexit through, with that problem more relevant given the premium market that Europe is for apparel wool products.
The EMI gained 55 cents for the week to close at 1,558 c/kg clean. The national pass-in rate was 7.7%. Sales resume in all three centres in the week beginning 13 January 2020.
On Tuesday, sale were held in all centres and the EMI surged 34 cents to 1,537 a kg clean and jumped 20 cents to 1,055 US cents a kg. On Wednesday, the EMI jumped another 21 cents or 11 US cents a kg. Thus, the week ended with the EMI rising 55 cents to close at 1,558 a kg clean and by 32 cents to 1,066 US cents from previous sales. A smaller national offering of 34,776, down 7,766 bales from last week, saw clearance rate improve to 92% as against 89% a week ago.
The AWEX reported turnover of wool sold at AUD$1.33 million, taking the season’s total to AUD$1,058.68 million.
In Sydney, sales on day one produced positive price movements across all microns. Merino fleece lines gained sharply on the back of strong buyer interest. Day two produced further gains, with best and good style lots with favourable additional measurements keenly sought. Finer Merino skirtings (< 17.5 µm) rose significantly on the week with broader types dearer. Finer crossbred lots (< 26.5 µm) rose a bit slower than former with broader lots up on day one with additional price increases on day two. Oddment lots ended day one dearer with crutchings posting further gains on day two, but locks and stains remained unchanged. The Northern Regional Indicator jumped 72 cents to 1,599 a kg clean, up with overall clearance rate at 91% as against 92% in previous week.
In Melbourne, day one saw high clearance rates and rising prices as buyers sought out fine lots (< 19.0 µm) with best style and favourable additional measurements. Day two mirrored the previous day with more positive movements with buyers continue to chase well measured lots with best style. Merino skirtings followed the fleece trend with strong gains across both sale days. Broader crossbred lots (> 29 µm) added more cents with finer lots up on day one with another lift on day two. The oddment sector weakened on day one before locks and crutchings gained on day two. The Southern Regional Indicator rose 45 cents to 1,533 c/kg clean, while the Southern Merino Carding Indicator fell 7 cents to 1,051 c/kg clean. The Melbourne pass-in rate was 5.7%.
The Southern Regional surged 45 cents to 1,533 a kg clean with clearance rate improving to 94% compared to 89% in the previous week.
In Fremantle, day one was a solid start with strong demand for merino fleece lots which continued until final hammer fell. A further small rises occurred on day two. Merino skirtings were also in favour, gaining much on day one and marginally on day two. Oddments were mixed in the west this week. The Western Regional Indicator climbed 57 cents to 1,671 c/kg clean and the Western Merino Carding Indicator gained 10 cents to 1,088c/kg clean. The Fremantle pass-in rate was 11.8%. The Western Regional Indicator jumped 57 cents to close at 1,671 a kg clean with a slight improvement in the clearance rate at 88% from 86% in the previous week.
Next week will see a sales roster showing 39,430 bales. This will be the last sale week prior to a three-week recess for the Christmas and New Year period. Sales are on Tuesday and Wednesday in all centres.
Next week commences the three-week recess before Christmas and New year. Sales will resume 13 Jan 2020.
