AUSTRALIAN wool prices fell slightly at auctions this week, despite the national offering dropping by 6605 bales to 34,460.

The passed-in rate delined marginally – 0.3 percent – to eight percent.

The Australian Wool Exchange said sale results were mixed across microns, wool types and regions.

“The Merino fleece Micron Price Guides (MPGs) movements across the country ranged from plus 6 to minus 38 cents.

“The AWEX Eastern Market Indicator (EMI) dropped by 7 cents, closing at 1131 cents/kg clean,” AWEX said.

“Over the last 18 selling days, only once has the EMI recorded a double-digit movement.

“This was on the 9th of October when the EMI rose by 23 cents,” AWEX said.

“If we compare this selling series to the corresponding sale of last season (Week 17), we get a good indication of how little the market has moved over the previous 12 months.

“The EMI was trading at 1139 cents, just 8 cents higher than the current level of the EMI.”

AWEX said the MPGs for Merino fleece across in the southern region ranged from a high of 1809 cents for 16.5 micron, down to 1260 cents for 22 micron.

“The MPGs today ranged from a high of 1775 cents (16.5 micron), a drop of 34 cents compared

to last year, down to 1236 cents (22 micron), which is a fall of 24 cents,” AWEX said.

“The only point of the market showing any significant improvement, is the EMI viewed in US dollar (USD) terms.

“In Week 17 last year the Australian dollar was trading at US63.85 cents, this is US2.91 cents lower than its current position,” AWEX said.

“Due to this currency movement, the EMI has improved in USD terms.

“The EMI was 727 cents last year and it has added 28 US cents over the previous 12 months, currently sitting at 755 US cents.”

Confidence and new business has waned – AWI

Australian Wool Innovation trade consultant Scott Carmody said almost all types and descriptions at this week’s Australian wool auctions sold slightly cheaper, with 5-10cents/kg clean lower bids being largely accepted at auction.

“The market meandered along, with buying participants looking for far better value than what eventuated.

“Both price and competition held right through to the close at better than expected results,” he said.

“Despite the 3-6 cents/kg greasy lower prices, growers were still keen to cash in at the spot price, evidenced by the 92 percent national clearance rates.”

Mr Carmody said the renewed confidence that appeared a few weeks ago has waned marginally, as have the new business opportunities.

“Exporters report demand out of China is consistent, but their buyers are now looking for value, rather than surety of supply, which seems to have been met for the time being.

“Indian enquiry and conversion to business is available but sharp for price, whilst the traditional strong market activity by the Europeans at this time of year is much less than usual, somewhat sporadic and very selective.”

Mr Carmody said buying at auction was as widespread across the purchasing identities as has been seen for quite some time and no individual sector dominated.

“Local traders started the week off strong, but were soon matched by the representatives of the first stage manufacturers out of China.

“The purchasing activity seemed to evidence a need of some inventory by most, but price sensitivity has come back into play as to the volume required or acquired on a weekly basis.”

Mr Carmody said price movements this week seemed to revolve around price alignment across the selling centres.

“By week’s end, the previous large gaps between Sydney and both Melbourne and Fremantle has mostly dissipated for standard types.

“Supply continues to be at the forefront of most operators strategies,” he said.

“The current season has sold far less bales compared to last year.”

During the 2023/24 season at the end of the same selling week, AWEX had reported 517,158 Australian stored bales sold when prices were – on average – nearly the same (EMI was 1128 cents).

“This season, over the same selling period, just 417,341 bales have moved through the trade’s books and machines, which is 99,817 bales or 19.3pc less supply sold ex-auction, or about 7130 bales fewer bales selling per week.

Next week, there will be about 39,500 Australian stored bales on offer over the usual Tuesday- Wednesday rotation.

Sources – AWEX, AWI.