AUSTRALIAN wool prices started on a positive note in the first auctions of the 2020/21 season this week.

After positive signs late last week, AWEX senior market analyst Lionel Plunkett said in welcome news to all industry participants, the market started the new season on a positive note.

“Strong buyer sentiment helped to push Merino fleece prices higher,” Mr Plunkett said.

The individual Micron Price Guides (MPGs) across the country rose by 3 to 27c.

The only exceptions were the 16.5 and 17 micron MPGs in the north, which lost 6c, and the 20 and 21 micron MPGs in the south, which recorded no change.

The AWEX Eastern Market Indicator gained 6c for the series, to close the first selling week at 1116c/kg clean.

Mr Plunkett said due to currency movements, the rise in the EMI in US dollar terms was only US2c.

“Many sellers take this opportunity to sell in the new financial year and most sellers in this sale were keen to accept the prices on offer,” he said.

“This was reflected in the national passed-in rate of only 5.1 percent, which was well below the yearly average of the previous season of 17pc, the highest figure since AWEX records began.”

Mr Plunkett said it was worth noting that the national fleece passed-in rate was just over 2pc.

The skirting market followed a similar path to the fleece, with prices generally increasing by 20-30c, and wool carrying less than 3pc vegetable matter most affected, he said.

The cardings were the only sector to record overall losses for the series.

“General losses in locks, stains and crutchings of 10 to 20c pushed the three carding indicators down by an average of 14c,” Mr Plunkett said.

Next week is the final sale before the annual three-week July recess. Sales revert to Tuesday/Wednesday selling and there are currently 36,712 bales available to the trade. Due to the small quantity on offer, Fremantle only requires a one-day sale, selling Wednesday.

Click here to read the latest AWEX Micron Price Guides.

Source: AWEX.