Wool Market Reports

Australian wool market retracts further as COVID-19 bites harder

Sheep Central April 24, 2020

Only superfine Merino wool prices improved slightly this week. Image – AWEX.

AUSTRALIA’S wool market continued to retract this week, with general overall losses recorded across the country for most Merino and crossbred types.

AWEX senior market analyst Lionel Plunkett said brokers offered only 24,874 bales nationally, including a Sydney catalogue of 4696 bales, its lowest weekly offering in since records began in 1997/98.

“Overall (bale) numbers continue to be well down on the previous season, when compared to the same time last year.

“There has been 152,758 fewer bales put through the auction system, a fall of 10.9 percent,” he said.

Mr Plunkett said the smaller offering helped to increase buyer demand, although the main buyer focus was on the better style wools and those with favourable additional measurement results.

“These better style wools recorded minimal movements; however, the large selection of lesser style wools and those with poor additional measurement results were not as well supported, losing ground as the sale progressed.

“The losses in these types was the impetus behind the reductions in the individual Micron Price Guides (MPGs) which generally fell across the country by 2 to 50 cents,’ Mr Plunkett said.

“The only exceptions were the finest MPGs in each centre, which record modest upward movements.”

Mr Plunkett said the crossbred fleece types also recorded overall losses and the MPGs for 26-28 micron fleece lost between 13 and 34 cents, helping to push the AWEX Eastern Market Indicator (EMI) EMI down.

“The EMI lost 20 cents for the series, closing the week at 1272 cents/kg clean.

“Due to currency movements, when viewed in $US terms, the fall in the EMI was marginally higher, a US26-cent reduction,” he said.

“When compared to the corresponding sale of the previous season, the EMI has fallen by 671 cents, a reduction of 34.5pc.”

Next week’s national offering increases slightly. There are currently 25,554 bales on offer. Due to reduced quantity Sydney only requires a one-day sale, selling on Wednesday next week. Melbourne and Fremantle will sell on Tuesday and Wednesday.

Click here for the latest AWEX Micron Price Guides.

Source: AWEX.


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