AUSTRALIA’S wool market generally held firm this week, with fine Merino prices lifting in Sydney and Fremantle auctions, but dipping in Melbourne.

Prices for crossbred wool 26-28 microns increased in Sydney and Melbourne sales.

The Australian Wool Exchange reported that the market recorded a small overall rise this week, taking a breath from the sharp upward trajectory seen over the previous few selling series.

Brokers offered 37,744 bales, 4078 more, and 6.9 percent were passed in.

“Higher prices of recent times have brought wool that was on hold to the market, as a result the total amount of wool offered this season is above the forecast figure,” AWEX said.

There have 1,298,119 bales put through the auction system and this is 52,512 bales or just 3.9pc less than the previous season. AWEX said there was an unusual selling pattern this week due to the Anzac Day Public Holiday. Only Sydney and Fremantle held public holidays on the Monday.

This meant that Melbourne opened proceedings, selling in isolation on Tuesday, with mixed results in the Merino fleece sector.

A range of movements in the Micron Price Guides (MPGs) of between plus 12 and minus 13 cents was recorded, AWEX said.

“Rises in the crossbred, skirting and oddment sectors helped to push the benchmark Eastern Market Indicator (EMI) up by 4 cents.

“This extended the run of positive movements of the EMI to seven,” AWEX said.

“Over this run the EMI added 175 cents, an increase of 10.2pc.”

AWEX said on Wednesday all three centres were in operation, and the movements in the MPGs ranged between plus 21 and minus 36 cents.

“The EMI surrendered the 4 cents gained on the previous day.

“On the final day it was Sydney’s turn to sell in isolation, and the market finished the week strongly, with the MPGs adding between 4 and 16 cents.”

AWEX said the EMI added 2 cents for the day and finished the selling series at 1897 cents/kg clean, an overall rise of 2 cents.

Next week’s offering is forecast to reduce. There is expected to be 34,290 on offer nationally.

Softer USD provided support – AWI

Australian Wool Innovation said the EMI eased modestly in USD terms, down US6 cents to US1352 c/kg.

“The WMI finished lower on its single selling day, losing ground for the first time in seven selling days. It closed 11 c/kg lower at 2114 c/kg and US16c lower at US1507 c/kg.

AWI said a slightly softer USD provided some support to returns this week; however, the Australian dollar remains relatively firm at around 0.71–0.72 USD, continuing to limit gains in USD terms.

AWI said this week’s increased offering brought a broader mix of wool to market, leading to heavier discounting on lower-quality lots and a softer underlying tone.

“While better types continued to attract solid support, the gap between modest premiums and larger discounts saw weaker lines weigh on the market, particularly in the Melbourne sale rooms.

“Next week’s offering is expected to ease by ~ 3,500 bales, which may provide some support to the market, although outcomes will remain dependent on buyer confidence and the overall quality profile of the catalogue,” AWI said.

“The market appears to be consolidating at current levels, with demand holding for better types but increasingly sensitive to quality.”

The upcoming sales will see 34,290 bales being offered, Fremantle selling on Tuesday while Sydney and Melbourne on the Tuesday-Wednesday roster.

Sources – AWEX, AWI.