STRENGTHENING demand for limited supplies of quality wool, especially Merino fleece, have pushed the market’s price benchmark to 1895c/kg clean.

The Australian Wool Exchange said brokers offered 33,666 bales, 11,099 fewer than in the previous auction series.

“This smaller quantity attracted strong widespread competition, pushing prices higher from the outset.

“In a rare opening day, Melbourne and Fremantle opened proceedings, as quantity dictated that Sydney only required one selling day (Wednesday),” AWEX said.

“The largest rises were again seen in the Merino fleece types.

“These rises were reflected in the Micron Price Guides (MPGs) which added between 21 and 87 cents.”

AWEX said with only Melbourne contributing to the benchmark Eastern Market Indicator (EMI) only 26 cents was added.

“All three centres were in operation on the second day, and the market continued to rise.

“Again, buyer sentiment was extremely high and bidding was spirited.”

AWEX said the MPGs across the country added between another 20 and 121 cents, and the largest gains were recorded in Sydney, as they did not enjoy the gains on offer on the previous day.

“The EMI closed the day 44 cents higher, finishing the day and the week at 1895 cents/kg clean.

“The EMI has added 171 cents over the previous three selling series, a rise of 9.9 percent,” AWEX said.

“Compared to the corresponding sale of the previous season, the EMI is 663 cents higher, an increase of 53.8pc over the previous twelve months”

AWEX said currency did not play a large part this week as there were similar rises when viewed in USD terms.

“The EMI rose by US57 cents for the week, an increase of 4.4pc.”

AWEX said the bale clearance rate was again very low, with just 2.8pc failing to reach seller reserve.

“For the past three weeks the passed in rate has been below 2.8pc, reducing the number of bales being held in broker’s stores.”

No buyer resistance at current prices – AWI

Australian Wool Innovation said the Western Market Indicator rose to 2125 c/kg clean (US1523 c/kg).

“Year-on-year, the EMI now sits 53.8pc higher in AUD terms and 74pc higher in USD, underlining the depth of demand supporting the market,” AWI said.

“Fine wools again led the market, with finer Merino fleece types (16.5 to 19 micro) posting gains in the order of 90-95 cents.

“Medium merino categories (19.5-24 micron) followed closely, adding 85-90 cents.

“In contrast, crossbred types (25–32 micron) continued to trend upward, but at a more modest pace, rising by 25-30 cents, reinforcing the emergence of a two-speed market, with finer types continuing to outperform broader microns,” AWI said.

Merino cardings also recorded solid gains of 25-30 cents for the week.

AWI said there was strong competition for well-prepared clips.

“Clearance rates remained above 97pc for the third consecutive week, highlighting continued buyer willingness to meet the market and secure volume.”

AWI said the market is currently being underpinned by a combination of tightening supply and sustained demand, with little evidence of buyer resistance despite recent price rises.

“The emergence of a two-speed market, led by fine Merino types, suggests demand remains concentrated in higher-value segments.

“While the short-term outlook remains positive, the market’s reliance on continued export demand will be critical in determining whether this momentum can be maintained, particularly given the ongoing uncertainty in the global economic environment.

In next week’s sale there will be an increased offering of 39,956 bales. Fremantle sells on Wednesday only, with Melbourne on Tuesday-Wednesday and Sydney on Wednesday-Thursday.

Sources – AWEX, AWI.