Hillcreston/Bigga offers five top quality 1PP bales

Sheep Central October 27, 2023

Hillcreston & Co. at Bigga, NSW, offered five 1PP bales through Nutrien this week.

SUPERFINE fleece and some fine crossbreds in Melbourne improved in price in an overall stable auction market this week.

The Australian Wool Exchange said the market recorded an overall unchanged result, with varied results within different regions, sectors and micron groups.

The largest gains for the week were seen in the finer Merino fleece types with strong widespread competition in this sector helping to push prices higher, AWEX said.

“This was highlighted in the individual Micron Price Guides (MPGs) for 17.5 micron and finer which rose by between 9 and 23 cents and in the 18 micron MPG in the west (the finest published MPG) which added 29 cents for the series.

“After these MPG rises the results as mentioned were varied, plus and minus results were recorded across similar types Australia wide,” AWEX said.

The AWEX Eastern Market Indicator closed the week unchanged on 1139 cents/kg clean.

The EMI continues to trade well below this time last year, the EMI is 161 cents, or 12.4 percent lower than Week 17 last season.

“Over the past year the finer microns have suffered greater falls than their broader counterparts, narrowing the price differentials between microns.

“This is best highlighted looking at the finest (16.5 micron) and broadest (22 micron) MPGs in Melbourne.

“In the corresponding sale of the previous season these two MPGs were 2323 and 1282 cents respectively, a difference of 1041 cents,” AWEX said.

“In this series these MPGs are now 1809 and 1260 cents respectively, a difference of just 549 cents.”

AWEX said the 1PP panel approved five separate lots this week. The 1PP definition is “wool produced in Australia which exhibits superlative quality and soundness and be prepared in the best possible manner” in addition to meeting specific technical parameters, including being assessed as Style 1. This impressive feat was achieved not once, but five times by the growers of HILLCRESTON/BIGGA.

Next week 47,202 bales are currently expected to be offered in Melbourne, Fremantle and Sydney.

Is ag product value affecting passed-in rates – AWI

Australian Wool Innovation trade consultant Scott Carmody said the week’s sales saw the purchasing division of our exporters shifting from the indent orders that were dominant in the market to the local traders hitting the top of buyers’ lists once more, across wool type sectors.

“Whilst indents from China remained in the market, their aggression of last week was not be seen, possibly indicating a prompt demand fulfilment for the time being from their clients.

“Not much buying activity was sighted from the majority of the large global top makers,” he said.

“The largest of the Chinese manufacturers though was the exception and maintained their steady and consistent buying rates on the Merino combing wool sector.”

Mr Carmody said crossbred wool became the domain of Australia’s largest exporter as it stepped in following on from the 2/3 weeks of price weakening in that area as buying orders waned.

“Impressive clearance rates continue to be a standout statistically and historically, as sellers decided to clear over 94pc of the wool that they had put up for sale this week.

“Auctions in Australia have averaged an annual clearance of 86.4pc for the preceding four seasons and the current 2023/23 seasonal average sits at 91.5pc indicative of the willingness to offer and price accept,” he said.

“The parlous state of the value of other ag products is perhaps the foundation?”

Mr Carmody said cardings and carbonizing (heavy vegetable matter – vm) types remain in the doldrums, with prices drifting once more under at best sluggish demand.

“Many manufacturers, traders and buyers of these wools are commenting that the current situation is some of the toughest business conditions encountered for decades.

“One positive for the wool market has been the stability in the general price indicator,” he said.

“This has been +/- 50/20 respectively for five months around both the AUD EMI average of 11.52 and USD EMI average of 7.50.

“This places price risk at very low levels through the entire supply/manufacture chain.”

Next week 47,202 bales are currently expected to be offered in Melbourne, Fremantle and Sydney.

Click here to see the latest AWEX Micron Price Guides.


Sources – AWI, AWEX.




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