AUSTRALIAN wool prices pushed still higher this week, despite almost 50,000 bales being offered in the second auction series of the new season and the last week before the annual three-week mid-year recess.
The Australian Wool Exchange said the national offering remained large, with higher prices in the previous series combined with this final selling opportunity, bolstering quantity.
“Nationally, there was 49,003 bales available to the trade.
“With two large offering to start the season, compared to the previous season, there has been 34,180 more bales offered, an increase of 51.7 percent,” AWEX said.
“As this is the final auction buying opportunity for nearly a month, there was strong buyer sentiment from the outset, as wool for any orders requiring shipment over the recess, needed to be purchased this week.
“Although toward the end of the series there was a noticeable softening, overall the market recorded general increases,” AWEX said.
“As Sydney and Fremantle did not sell on the final day of the previous series, where Melbourne recorded solid gains, the individual Micron Price Guides (MPGs) in the north and west, had the largest increases, of between 2 and 43 cents, only the 16.5 micron MPG in the north recording a loss.”
AWEX said its Eastern Market Indicator (EMI) added 8 cents for the week, closing at 1428 cents/kg clean.
“After a noteworthy price of 8100 cents was achieved in the previous series — the highest in over three years — that record seasonal price has already been broken, not once but twice.
“This week a 12.7 micron line of Merino fleece and a 12.6 micron line of Merino necks both sold for 9000 cents, the highest greasy sold price in over six years,” AWEX said.
After struggling last week, the crossbred wools were the strongest performing sector this week.
“Increases of between 24 and 60 cents, helped to push the crossbred MPGs into positive territory for the season,” AWEX said.
Crossbred gains were the most significant – AWI
Australian Wool Innovation trade consultant Scott Carmody said Australian wool auction markets again defied potentially negative price outcomes due to the large supply this week.
“Prices held onto the established general clip value, despite the 50,000 bales being offered.
“There were some individual variations recorded across wool types with falls at the finest end of the Merino sector and some very welcome and high percentage gains on crossbred wool types being the most significant,” he said.
Mr Carmody said demand from China, with some support from India, Italy and the Czech Republic was strong enough this week to support the volume offered and see a clearance of rate of 86.6pc of wool auctioned reaching trade hands.
“Widely variable pre-sale thoughts were aired, with one or two major players bullish in predictions, but the general (averaged) consensus matched the final result of the market just holding on,” he said.
“The Merino fleece and skirting market was strongly led by local traders but very strong additional competition came from Chinese indents and Chinese top makers to keep prices generally in check.
“Types finer than 17 micron though were hit hard and dropped 40 to 80 cents, with larger volumes available from previously held in store wools adding to the freshly shorn clip wool,” Mr Carmody said.
“All 17.5 micron and broader Merino wool was near unchanged with some minor movements of just +/- 10ac being registered by the close of selling.”
Mr Carmody said an aggressive purchasing strategy was witnessed from Europe’s largest top maker within the crossbred sector, resulting in gains of 6-9pc for all wools 26 to 30micron.
“The 32 micron wools gained over 15pc but this was on very limited quantity.
“This single buyer took over 32pc of crossbred wool type sold with their nearest competition arising from a Chinese indent and local exporters who took 11pc or less.”
Carding wools sold generally firm for the week with the local manufacturers keen but often outbid by traders and Chinese indent buyers,” Mr Carmody said.
“The immediate prospects for wool fortunes appears reasonably positive at present, with demand expected to build over the 3 week recess that Australia’s wool auctions are now in.
“This hiatus should assist exporter and buyer finances and allow full trade operations upon resumptions of auction selling in the week commencing 9th August.”
Click here to read the latest AWEX Micron Price Guides.
Sources – AWEX, AWI.