GROWERS acted quickly to increase wool bale withdrawals as demand waned slightly at Australian auctions this week.
The passed-in rate rose 3.4 percent to 12.7pc as the Australian wool market recorded a small overall loss this week, although AWEX said there were positive signs of prices strengthening on the final day.
AWEX said the national offering rose slightly to 34,537 bales.
“When compared to the corresponding sale of the previous season there has been 73,328 more bales offered at auction, an increase of 30.4pc.
“The weaker tones evident on the final day of the previous series carried into this week,” AWEX said.
“As the market opened buyers adopted a more cautious approach and as a result the prices being achieved on Merino fleece types were generally 20 to 40 cents below the close of last week.
“These losses combined with general losses in the other sectors pushed the benchmark AWEX Eastern Market Indicator (EMI) down by 16 cents for the day,” AWEX said.
On the second day, the market rallied as buyers were noticeably more spirited in their bidding, especially in wool 19.5 micron and coarser.
“These gains combined with generally gains in the other sectors helped to push the EMI up by 7 cents for the day.
“The EMI closed the week at 1352 cents/kg clean, 9 cents lower than the previous series, a marginal 0.7pc reduction,” AWEX said.
“The higher prices being achieved compared to this time last year (the EMI is 44.3pc higher than at the same time last year), combined with the larger amount put through the auction, has pushed the national turnover amount well above last year’s level.
“At the same time last year, the total turnover amount (in AUD) was $263.42 million,” AWEX said.
“By the end of this series the turnover amount for the current season is $401.66 million, an increase of over 138 million dollars.”
AWEX said the crossbred wools recorded the largest percentage losses this week and the crossbred indicators dropped by between 12 and 20 cents for the series.
Next week 37,156 bales are currently expected to be offered in Sydney, Melbourne and Fremantle.
Click here to see the latest AWEX Micron Price Guides.