AUSTRALIAN wool prices lifted on market conditions of low supply and better demand rather than currency at auctions this week.

The Australian Wool Exchange said the smallest bale offering of the season – 20,756 bales — was presented at auctions in Sydney and Melbourne, with no sale in Fremantle.

Brokers passed in 5.4 percent of the offering.

“The small offering attracted strong buyer support and although the selection was not large, what was available attracted spirited bidding,” AWEX said.

This resulted in price rises in the Merino and crossbred fleece, and oddment categories, AWEX said.

“By the end of the selling series, the individual AWEX Micron Price Guides for Merino fleece had risen between 1 and 24 cents, with the only anomaly a 22-cent fall in the 19.5 MPG in the north.

“The benchmark Eastern Market Indicator gained 10 cents for the week, closing at 1207c/kg clean, AWEX said.

AWEX said the crossbred sector of the market continued to strengthen, adding further increases to those achieved over the previous weeks.

“The recent rise in the crossbred is best highlighted by viewing the southern MPGs.

In week 45 — starting 7 May – the 26 micron MPG was 588 cents, today the MPG is at 652 cents, an increase of 19.8 pc.”

AWEX said the 28 micron MPG has risen 7.7pc, while the strongest performer has been the 30 micron MPG, which went from 360 cents to 4045 cents, an increase of 12.5pc.

“To put this into perspective, the best performing Merino MPG over the same period was the 17.5 micron MPG, which has risen by 4.1pc.

“The EMI has risen by 1.3pc over the same timeframe, and the small rise the EMI achieved was helped by the strengthening of the crossbreds.”

AWEX said the final sale of the season next week will include Fremantle, pushing the national quantity up to 32,648 bales.

Low supply and better demand lifts prices – AWI

Australian Wool Innovation trade consultant Scott Carmody said the continuing low supply combined with just slightly better demand to help push prices upward at this week’s Australian wool auctions.

“With just Melbourne and Sydney operational (Fremantle sat out) there was just over 20,000 bales eventually offered, and around 95pc of this was cleared to the trade in the penultimate sale of the season.

“There are five selling weeks remaining until the winter three-week recess,” he said.

“South Africa is now in their two-month recess and auction sales there will resume in late August.

“Understandably, most buyers were not wanting to push “too hard” to buy.”

Mr Carmody said with just normal purchasing appetite evident across all segments, it was somewhat inevitable that prices would have to rise.

“Not one single entity forced the market, but the regular container filling by indents and direct buyers, and order completion by traders, saw all types and descriptions in positive price territory,” he said.

Mr Carmody said most of the Merino sector lots offered sold at general levels of 10-20 cents clean dearer than the previous week, but this was made up by good wools gaining 30-40 cents dearer and lower end types par to 10 cents dearer.

“The largest China top makers were the main buyers and were supported well by the trading fraternity.

“China indent buying appeared to stronger than the past month, perhaps indicative of both sides of the trade being hesitant to commit to contracts given the low volume and variable quality of supply.”

Mr Carmody said some of the best wools suitable for European spinners and RWS certified scheme wools (somewhat irrespective of type or quality) continue to attract large price premiums and in many instances sold 150ac above the normal types.

“The best premiums remain in the 18 to 21 micron certified wools, where very low availability plays it part.”

Mr Carmody said the crossbred wool types had a good week, with the mid-microns (28 to 30 micron) performing well and adding 15 cents to values, gains of 3.5-4pc for the week.

“The finer types (25 to 27micron) were 5-10 cents higher and the broadest wool of 31 micron-plus being 5 cents dearer.

“Carding types are also showing signs of improvement and solid gains of up to 10 c/kg clean were recorded this week.”

Sources – AWEX, AWI.