The Australian wool market saw another week of price decline following two weeks of rising prices. The EMI finished the week 39 cents down at 1,555 AUD cents a kg clean or down 36 cents at 1,068 US cents a kg. On Wednesday, the EMI sobered 24 cents to 1,570 AUD cents a kg clean or 21 cents to 1,083 US cents a kg. On Thursday, the EMI fell a further 15 cents, or 15 US cents a kg. The AWEX reported turnover of wool sold at AUD$48.84m, taking the season’s total to AUD$726.90m.
Medium microns were out of favour, with crossbred and oddments both weaker. Growers baulked at this price level as the clearance rate declined to 82% nationally, as against 93% in the previous week. The national offering was down 9% to 34,084 bales. The latest week’s numbers show that 406,875 bales have been sold so far this season. At the same point in the last season 2018-19, 521,939 bales or around 22% more volume had moved into the supply chain. In the 2017-18 season, 646,907 were sold by week 19, which was cumulatively a 37% higher volume in just the three-year period.
This week, a very cautious approach to buying was taken by most purchasers from the beginning of the sale. In comparison, a leading buying house was keen to cover on the first day as prices were in their favour, but their appetite waned on day two, resulting in a further fall which allowed others to enter the market. Not surprisingly, as more buyers participated, the market recovered somewhat, and to such an extent that the Western market outperformed its Eastern counterparts.
In Sydney, sales attracted a large selection of ASF lots. Keen bidding on Wednesday saw prices gain before retreating on Thursday. Good and best style fine lots (< 18.5 µm) with favourable additional measurements rose up to 10 cents, while the more abundant less stylish lots fell on day one with broader MPGs largely losing. Day two saw the market soften further, with broader MPGs most affected. Merino skirtings lost ground with poorer style lots down, before stabilising on day two. Crossbred lots trended cheaper and oddment lots were mixed. The Northern Regional Indicator plunged 43 cents to 1,583 AUD cents a kg clean with an overall clearance rate of 89%, as against 96% in the previous week.
In Melbourne, Wednesday saw prices lower with falls across microns. Thursday saw further falls, before grower resistance moderated the clearance rate and the market began to strengthen. Stylish lots with high strength and low midbreaks were least affected and remained on par with Wednesday’s level. Low style lots with unfavourable additional measurements were in abundance and lost few cents. Merino skirtings languished up to this week, with stylish, low VM lots falling marginally. Finer crossbred lots fell with poorly prepared lots most affected. Oddments maintained last week’s levels on day one, with mixed results on day two. The Southern Regional Indicator finished the week down 33 cents at 1,534 AUD cents a kg clean with a clearance rate of 82%, as against 95% in the previous week.
In Fremantle, prices across all microns fell on Wednesday with finer lots < 19.0 µm least affected and broader lots up. The tone was lifted on Thursday and regained some of the previous day’s losses. Despite this, just 70% of merino fleece lots were cleared. Merino skirtings eased on day one before increasing on day two. Oddments were mixed. The Western Regional Indicator lost 25 cents to close at 1,662 AUD cents a kg clean with a fall in the clearance rate at 74%, as against 87% in the previous week.
Next week, 38,497 bales are rostered for sale across the three centres.
