FINE wool prices lifted in Melbourne and to a lesser extent in Sydney this week, but the market’s eastern states benchmark indicator dropped further as medium Merino and crossbred values weakened.
AWEX senior market analyst Lionel plunkett said the Australian wool market recorded further overall losses this week.
“However, worth noting there was strengthening in some individual Merino microns and in other sectors of the market.
“Due partly to the fact that the Western region did not have a sale this week, the national quantity reduced to 20,488 bales, 12,688 bales less than offered in the previous week,” he said.
Mr Plunkett said this was the smallest national offering of the 2020/21 season so far. However, growers still passed in 11.2 percent.
“When compared to the previous season there has been 3806 fewer bales put through the auction system, a reduction of 1.9pc.
“Within the Merino fleece, results varied for the series, depending on micron,” he said.
“The finer microns fared best, with 18 micron and finer posting very minimal losses, up to a 23-cent rise in the individual Micron Price Guide (MPG) for 17 micron in the south.
“The medium to broad microns were the hardest hit this series, with the MPGs for 20 to 22 micron losing 34 to 54 cents for the series,” Mr Plunkett said.
“The losses in this micron group was the driving factor for an overall loss in the AWEX Eastern Market Indicator (EMI), which fell by 16 cents for the series, closing at 929 cents.
“The EMI has now fallen 680 cents since the first sale of this calendar year, a drop of 42pc.”
Mr Plunkett said when compared to the corresponding sale of the previous season, the EMI has fallen 446 cents, equating to a 32.4pc drop.
“After suffering heavy losses over the previous month, the oddments bounced back this week and were the best performing sector for the series.
“Solid rises in the south pushed the Merino Carding Indicator (MC) up by 42 cents, while the north recorded a modest rise of 6 cents.”
Fremantle returns to the roster next week, pushing the national quantity up. Currently, there are 32,958 bales on offer, with all three centres in operation.
AuctionsPlus sells 190 bales online
AuctionsPlus reported that it sold 190 bales on its online offer board over the past week.
Merino fleece lines drew more buyer interest this week, with an 18.3 micron line selling for up to 767c/kg greasy. The lot had an average staple length of 97mm and had a 1.6pc vegetable matter content. It was branded Stradbrooke and sold by Elders Wool. The top-priced lot was a 13.7 micron Australian superfine Merino line that sold for 2770c/kg greasy. It was branded Glen Stuart and sold through Roberts Wool.
Click here to read the latest AWEX Micron Price Guides.
Sources: AWEX and AuctionsPlus.