AUSTRALIA’S auction wool market has had another week of minimal price movements, culminating in an overall marginal decrease in the benchmark.

The Australian Wool Exchange said market movements were varied across microns and regions.

“The movements in the individual Micron Price Guides across the country ranged between plus 25 and minus 31 cents.

“The 19 micron and finer MPGs in the west posted the largest increases, while the 18 micron and finer MPGs in the north recorded the largest falls,” AWEX said.

The national offering was 38,172 bales, 253 fewer bales than last week, and brokers passed in 8.9 percent.

AWEX said on the first selling day the benchmark AWEX Eastern Market Indicator fell by 2 cents.

“This was the nineteenth selling day in a row where the EMI recorded a single digit movement.

“On the final day the EMI recorded no movement, finishing the day unchanged.”

AWEX said this stretched the run of single digit movements to 20.

“This was the longest run of single digit daily movements since a run of 25 between October 2014 and January 2015.

“The EMI finished the series just two cents lower, closing the week at 1140 cents/kg clean.”

AWEX said a weaker Australian dollar — the AUD fell by US0.45 cents since the close of the previous auction series — meant that when viewed in US dollar terms, the overall market reduction was larger. The EMI dropped US6 cents for the week, closing at US728 cents.

Fremantle sale was the highlight – AWI

Australian Wool Innovation trade consultant Scott Carmody said prices at the penultimate Australian wool auctions prior to the three-week Christmas/New Year recess continued down the same uneventful path that has been the season long trend.

“Across both the Merino and crossbred sections, most wool types and descriptions saw movements of just +/- 10ac around the established price levels.

“Traders led the competition initially, but, as the week progressed, the first stage manufacturers lifted their purchasing rates to be dominant by the close,” he said.

“An average 1pc lower AUD on the major forex trading pairs assisted prices hold firm.”

Mr Carmody said the general auction atmosphere and obvious purchasing strategies though was rather circumspect, with careful attention being paid to only taking on board inventory necessary to complete immediate needs, given the costs of holding wool through the upcoming recess.

“The highlight of the selling week was in the Fremantle centre in Western Australia which recorded an overall gain in their market indicator of 3 cents.

“This rise came largely on the back of strong competition around the 19 micron Merino wools, which gained 20 cents for the week and closed the highest of all indicators for that micron nationwide.”

Mr Carmody said being the last centre to conclude selling for the week, perhaps the Fremantle activity gives a lead into what may occur at next week’s final 2024 auction sales.

“Wool prices have been remarkably stable for the past eighteen months with the maximum EMI price differential of 125c/kg clean.

“The high of 1212c/kg was registered 12 months ago in December 2023 and a low of 1087c/kg was in August this year.”

Mr Carmody said the 18 month Eastern Market Indicator average is currently 1144c/kg and the Western Market Indicator is at 1280c/kg clean.

“The overriding influence going forward though will be from the supply side of the industry.

“Auction sales up to the end of Week 24 in 2023 compared to Week 24 of 2024 this past week shows bales sold for this year are 152,283 bales lower or a drop off of over 19pc.

Around 36,000 Australian grown bales are on offer next week in the final sale of the 2024 calendar year. All three selling centres will operate, but Fremantle will only sell on Tuesday given the low volumes available. Sydney and Melbourne will operate to the usual Tuesday and Wednesday roster.

Sources – AWEX, AWI.