CAUTIOUS buyers led to another fall in wool prices in the first auctions after the annual one-week Easter recess.

Brokers offered 40,295 bales, 1919 bales fewer than the last sale before the break, and 15.8 percent were passed in.

The Australian Wool Exzchange said most of the losses were experienced on the opening day.

“Across the country the individual Micron Price Guides (MPGs) movements for Merino fleece ranged between unchanged and negative 25 cents.

“The other sectors recorded small overall losses.”

AWEX said the benchmark AWEX Eastern Market Indicator lost 14 cents on the first day of selling.

“The second day the market again recorded an overall loss, although there were pockets of positive movements within sectors and within the MPGs.

“Of note was the 19 micron MPG that recorded increases of between 11 and 15 cents in Sydney and Fremantle, on the back of noticeably increased competition on these lots.”

AWEX said the EMI fell a further 8 cents, closing the week 22 cents lower at 1210 cents/kg clean.

“The EMI has now fallen across the last five selling days, losing a total of 54 cents across these sales.

“The last time the EMI fell by more than this across five selling days, was back in June 2023, when the EMI dropped 80 cents across five selling days,” AWEX said.

“Again, currency played its usual role in the market.

“A strengthening of the Australian dollar compared to the US since the close of the previous series, meant that when viewed in US dollar terms the market news was more positive.”

AWEX said the EMI lost just US7 cents for the auction series.

“Shearing has been completed for the season in many parts of the country and in selected areas yearly cropping programs have begun.

“This has contributed to a reduction in the national quantity for next week.”

Extremely cautious environment – AWI

Australian Wool Innovation trade consultant said auctions resumed in an extremely cautious sale room environment.

“Buyer activity was somewhat apprehensive.

“Sellers were wanting to meet the market but were not prepared to sacrifice too much of the current values,” he said.

“This led to the national passed in rates being over 15pc this week, double that of the seasonal weekly average of around 7.5pc.”

Mr Carmody said Merino types were generally 10-20 cents clean cheaper for the week.

“Within this though, the lower quality lots finer than 19micron and being drought-affected were 30-50 cents lower as current orders are finding it hard to accommodate these wools.

“These types are growing in volume and finding better spec wools going forward is going to get tougher, particularly considering the ever-reducing total supply volumes from Australia,” he said.

Mr Carmody said crossbred wool types and all carding descriptions were far more supported throughout the week.

“Prices in these sectors showed only 5-10 cents losses and held on rather well.

“Across all wool types though, it is a common pricing issue that the better wools are being far less affected by the general soft auction atmosphere and demand scenario,” he said..

“Buyers are reporting their clients are not just being circumspect, but positively planning for the future under what is expected to be vastly different global supply chain operations amid rising costs.

“Time is needed to strategize and assess the everchanging situation and to calculate manufacturing and delivery to meet retail offering,” Mr Carmody said.

There are expected to be 31,546 bales on offer in Sydney, Melbourne and Fremantle next week.

Source – AWEX, AWI.