AUSTRALIAN wool prices improved this week, with upward market movements across all categories recorded on both selling days.

The bale offering fell by 1772 to 33,633 bales and brokers passed in 5.9 percent, up 1.1pc.

The Australian Wool Exchange said the national offering continues to trend lower and so far this season 575,656 bales have been offered.

“This is 133,896 fewer bales than the previous season, a drop of 18.9pc.

“After Week 20 this is the smallest season to date offering since the 2020/21 season, where at the corresponding sale just 526,889 bales had been offered,” AWEX said.

“The market performed strongly on the opening day and across the country the Micron Price Guides (MPGs) for Merino fleece for 17 micron and coarser increased by between 9 and 28 cents.

“The benchmark AWEX Eastern Market Indicator rose by 9 cents for the day.”

AWEX said on the second day the market recorded minimal change and the Merino fleece MPG movements in the south and the west ranged between plus 2 and minus 3 cents.

“In the north, the movements were larger, between plus 26 and minus 9 cents.

“The EMI added another cent, closing at 1142 cents/kg clean.”

AWEX said crossbred wools have been the strongest performing sector over the previous few months.

“The 28 micron MPG in particular, has risen for six of the last seven selling series.

“So much so, that the 28 micron MPG in the south is now at its highest point since 14th of July 2022.”

AWEX said with a smaller season to date offering and minimal price movements, the total dollar value of wool sold this season is well down.

“For the 2024/24 season, there has been a total of $702 million worth of wool sold through the auction system.

“This is $158 million less than the 2023/24 season, a fall of 18.4pc.”

Consistent gains for Merino wool – AWI

Australian Wool innovation trade consultant Scott Carmody said positive sentiment was evident again in the sale rooms at this week’s Australian wool auctions, despite business conditions remaining lethargic.

“Some good enquiry had turned into some new contracts at the end of last week, but follow-on opportunities could not be realized throughout much of the current week.

“The trade saw the bales sold for the season push through the half a million bale mark this week, a figure that had been met three weeks earlier last season in sale week 17,” he said.

“The foreign exchange (forex) rates went to the advantage of local AUD based auction sellers.

“The stronger US dollar (USD) in particular assisted the general price levels to initially improve at the start of the auction sales, then enabled values to hold towards the close when most prompt orders had been met,” Mr Carmody said.

“By the AUD moving 1.3pc lower, the prices measured by the EMI underperformed that forex-induced benefit.

“A 0.9pc gain eventuated by the close of selling for the series.”

Mr Carmody said the most striking outcome on price analysis this week was the regularity and consistency of the gains right through the Merino offering.

“Almost all quoted microns, across all three selling centres moved upward within the 10 to 15c/kg clean range, ignoring the anomaly of the quotes of 17.5 and 18 micron out of Sydney which were quoted as being 45 to 50 cents dearer.

“Sale room operators reported it was mainly currency driven advances,” he said.

Mr Carmody said crossbred wool types continued their 12 month long slow and steady price climb out of the doldrums.

“An additional 5c/kg clean was placed onto their established values.

“Cardings remain firmly planted to similar quotes, despite some talk of more interest and enquiry being shown on buying the shorter and carbonizing types from overseas users.”

Mr Carmody said locally-based traders and exporters were again dominant on buying lists, but their purchasing intensity was definitely more subdued on the final days operations.

“Interesting to note though was that last day of selling saw prices generally drift but towards the close, activity to finish off specific orders strengthened and saw prices revert to the positive.

“Top makers out of China were more active, but very price sensitive to avoid getting caught up in trader actions.”

Next week’s offering is forecast to increase. There are expected to be 39,616 bales on offer in Sydney, Melbourne and Fremantle.

Source – AWEX, AWI.