It was another wild but positive week for the Australian wool markets with values up across all three centres. Prices were substantially dearer across the entire offering as news emerged from the Nanjing Wool Market conference. The largest wool trade gathering annually, had predicted the positive gain. The EMI closed at 1,609 a kg clean, up 67 cents, and also up 40 cents at 1,087 US cents a kg. The national offering was reduced to 27,458 bales, as fresh wool was bolstered by sellers holding wool, waiting for market improvement. The national clearance rate improved to reach 92%, up from 90% the previous week.
On Wednesday, the EMI rushed up by 61 cents to 1,603 a kg clean and up 40 cents to reach 1,087 US cents a kg. On Thursday, the EMI inched up 6 cents to 1,609 cents a kg and rolled over in US dollar terms to 1,087 a kg.
The AWEX reported total turnover of wool sold at $47.35 million, taking the season’s total to $424.93 million.
Most players acknowledged the state of the global economy had seen demand decay and that the US administration had killed any sort of remaining confidence. But, the business around was enough in the tight supply environment to see some machinery demand return at least. Overall, manufacturers were looking to fill the near empty greasy wool section of the wool pipeline, but warnings of low demand remained in play.
In Sydney, sales began with large prices jumps across all microns on Wednesday. 19-20 µm range were keenly sought and competition produced higher price gains. Thursday's sale saw continued buyer demand consolidate these prices. Merino skirtings were in favour this week and well measured lots were well supported. Crossbred lots followed the Merino fleece trend while oddments recorded price gains across all categories. The Northern Regional Indicator rose 65 cents to 1,635 a kg clean with overall clearance rate at 97% as against 92% in previous week.
Melbourne market mirrored the movements in Sydney with substantial price increases in the 19.5 - 21 microns on Wednesday and maintenance of levels on Thursday. Best style Merino skirting lots with low VM gained on Wednesday with further increases on Thursday. All crossbred types gained ground this week, with finer lots rising sharply and broader lots slightly slower. Oddment lots increased in value. The Southern Regional Indicator finished at 1,593 a kg clean, up 69 cents from week ago with clearance rate of 96% as against 88% in the previous week.
Fremantle market saw a roller coaster week as performance was strong on Wednesday with sharp price increases across microns. Demand waned on Thursday with prices retracting. Wool producers reacted to this sluggish demand by passing in lower offering. Merino skirtings with < 3% VM rose on Wednesday, those with > 4 % VM gained. All categories of oddments gained ground. The Western Regional Indicator added 59 cents to 1,702 c/kg clean. The Western Merino Carding Indicator rose 76 cents to 1,047 c/kg clean. The Fremantle pass-in rate was 19.7%.
The Western Regional Indicator gained 59 cents to 1,702 a kg clean with a lower clearance rate of 80% as against 90% in the previous week.
Next week 40,999 bales are rostered for sale across Sydney, Melbourne and Fremantle.
