It was another tough week at the Australian wool auctions. Prices were down in varying degrees for almost all of the selections put up for sale, apart from the cardings which managed to hold firm against the negative trend.
The EMI fell by 38 cents to close at 1,492 a kg clean. The strengthening of Australian Dollar versus all major trading currencies used in wool trading placed downward pressure on the market as did the lack of ability of local and overseas buyers to effect delivery in a timely manner into the Chinese mills in the new-year. The EMI ended at 10.20 US dollar a kg, down 15 cents from previous sales.
A larger national offering of 38,149, up 322 bales on last week saw clearance rate of 80% as against 86% a week ago.
On Wednesday, the EMI fell by 17 cents to 1,513 a kg clean or 2 cents to 1,033 US cents a kg. On Thursday, the EMI fell further 21 Australian cents or 13 US cents a kg. The AWEX reported turnover of wool sold at $50.00 million, taking the season’s total to $945.47 million.
Sydney fleece market ended the in negative territory, weighed down by an offering of 18.5 micron and finer wools which eased across all types and descriptions. The broader microns generally maintained buyer support, ending lower. Merino Skirtings of 17.5 micron and finer wools were lower, whilst the broader microns were cheaper. Crossbreds of 26.5 micron and finer wools eased whilst broader microns were generally unchanged. Locks ended in buyers’ favour. The Northern Regional Indicator finished at 1,524 a kg clean down 37 cents with overall clearance rate at 86% as against 87% in previous week.
In Melbourne, day one losses were recovered as low clearance rates limited availability of quantity and consequently applied pressure to wools on offer. 18 micron and finer closed the day easier while 18.5-19.5 micron rounded off easier with 20 micron and broader trading dearer than day one. Merino skirting wool fell across all microns for lower style/higher VM ranges and best style closed down across all microns. Crossbreds 29 micron and finer experienced minor losses while 30 micron and coarser fell. The Southern Regional declined 40 cents at 1,571 a kg clean with clearance rate at 80% compared to 87% in the previous week.
In Fremantle, fleece market continued to track downward with all types and descriptions easier. However, on day-two prices noticeably improved, leaving only 18-22 micron easier on average. Many sellers were reluctant to accept the price reductions, nearly 40% of the fleece failed to reach seller reserve. Merino skirtings 8.5 micron and finer were dearer on day two. All other descriptions were fully firm. The Western Regional Indicator plunged 36 cents to close at 1,604 a kg clean with decline in the clearance rate to 72% from 81% in the previous week.
Next week, 39,454 bales are on offer across the three selling centres with auction at Melbourne having an extra day trading on Tuesday.
