Although the Australian wool auction sales this week produced little price variance, it was perhaps the most impressive sale of the season thus far. Larger volumes, adverse foreign exchange rates, relatively low quality of a large portion of the selection and the ever-present influences of the global economy were among the main pre-sale concerns. But what resulted was quite the opposite. Most types held ground strongly against the negativity and the largest segment, the Merino fleece, gained upwards. The looming Christmas recess also drove demand as buyers sought to plan ahead and secure sufficient quantities. All three centres opened strongly, with gains posted in all microns across regions.
On Tuesday, the sale was held only in Melbourne where the Southern indicator gained 9 cents with the EMI increasing by 6 cents to close at 1,498 a kg clean. On Wednesday, sales were held in all centres and the EMI inched up 2 cents to 1,500 a kg clean, while it remained flat at 1,023 US cents a kg. On Thursday, the EMI rose 3 cents or 12 US cents a kg. Thus, over the week the EMI rose 11 cents to close at 1,503 a kg clean and by 15 cents to 1,035 US cents previous sales. A larger national offering of 42,542, up 4,393 bales from last week, saw clearance rate improve to 89% as against 80% a week ago.
The AWEX reported turnover of wool sold at AUD$61.89 million, taking the season’s total to AUD$1,007.36 million.
In Sydney, consistent demand saw price increases across all microns on day one, extending the positive tone on day two with further price gains. Broader lots were at the top end of the price gains. All types and descriptions of Merino skirtings rose on day one but moderated somewhat on day two. Finer crossbred lots lost some ground earlier, while broader lots gained, before crossbred market softened on day two. Soft demand for oddments saw all categories ease. The Northern Regional Indicator finished at 1,527 a kg clean, up 3 cents with overall clearance rate at 92% as against 86% in previous week.
Melbourne has a three-day sale this week with strong competition for stylish lots with favourable additional measurements on day one setting the tone. Gains consolidated on day two, with buyers continuing to chase well measured best style lots. High quantities of poorer style lots with low strength between 18.5 to 19.5 on day three pushed these microns into negative territory, while other microns continued to rise with finer lots (<18 µm) gaining the most ground. Merino skirtings were robust, starting soundly and maintaining value, and gaining further on day two before regaining early losses on day three. Well prepared crossbred lots attracted spirited bidding and gained ground while oddment eased as the week progressed. The Southern Regional rose 17 cents to 1,488 a kg clean with clearance rate at 89% compared to 80% in the previous week.
In Fremantle, buyers were seen competing strongly amid all microns gaining on day one before posting mixed results on day two. Low VM fine Merino skirtings gained on day one, before the skirtings weakened on day two and generally reversed the previous day's gains. Oddments were mixed on day one and all categories eased on day two. The Western Regional Indicator was up 10 cents to close at 1,614 a kg clean with improvement in the clearance rate at 86% from 72% 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.
