AUSTRALIA’S wool market recorded a small overall rise this week, after two successive weeks of large losses.

The Australian Wool Exchange said the increase was driven by rises in the Merino fleece sector.

Brokers offered 28,960 bales, 3299 bales fewer than last week, and 5.7 percent were passed in.

“When compared to the previous season, the national quantity is tracking higher,” AWEX said.

“There have been 4228 more bales offered so far in the new season, an increase of 7.4pc.”

AWEX said on the opening day of selling, the Merino fleece Micron Price Guides (MPGs) in the eastern auction centres posted movements ranging between minus 9 and plus 34 cents.

“As the market got progressively dearer as the day wore on, the largest gains were seen in the West, which sold last.

“In Fremantle, the MPGs added between 15 and 44 cents.”

AWEX said the benchmark Eastern Market Indicator added 4 cents for the day.

“Due to currency fluctuations when viewed in US dollar terms the increase in the EMI was larger, the EMI rose by US13 cents.”

On the second day of the series, AWEX said the Merino fleece market recorded little change.

“The Merino fleece MPG movements ranged between minus 29 to plus 15 cents.

“The EMI rose by the barest of margins,” AWEX said.

“In a reverse trend of the previous few series, weakness in the crossbred sector prevented the EMI from recording a larger rise than it did.

“In Melbourne the crossbred MPGs lost between 5 and 35 cents for the week.”

AWEX said the oddment market has also performed weakly and the three Merino Carding (MC) indicators fell by an average of 9 cents.

Next week only Sydney and Melbourne are in operation, Fremantle does not hold a sale in Week 3 due to the very limited amount of shearing that happens in Western Australia in June. There are currently 21,646 bales expected to be offered nationally.

Price headwinds for exporters and buyers – AWI

Australian Wool Innovation said the EMI rise in US-dollar terms provided headwinds for exporters and overseas buyers.

AWI said the price recovery was led by the Merino fleece sector and most clearly demonstrated in the western selling centre. The Western Market Indicator rose by 22 cents to 2094 c/kg clean, while in US-dollar terms western returns lifted by US26 cents to US1453 c/kg, highlighting the strength of buyer support in Fremantle.

Source – AWI, AWEX.