NON-MULESED wool sold at premiums of 100-350 cents above similar mulesed types in Melbourne auctions this week.
The Australian Wool Exchange said a large selection of certified specialty non-mulesed wool types came under intense buyer pressure on the last day of selling in Melbourne, with wools broader than 20.5 micron most affected.
One line of 21 micron wool sold at 1669 cents/kg clean, compared to the southern 21 micron Micron Price Guide of 1296c/kg.
AWEX said the Australian wool market overall recorded a small increase this week for a national offering of 41,549 bales, 3918 more.
“This increase was due in part to Melbourne’s ability to conduct a three-day sale.
“Due to COVID-19 restrictions over the previous few months Melbourne has been limited to two-day sales, to minimise the amount of time buyer and seller staff attend wool auctions,” AWEX said.
“These restrictions were eased this week.”
AWEX said the rise in the market was driven largely by the increases in the medium to broad Merino fleece types.
“The individual Merino Price Guides (MPGs) across the country for 19 micron and coarser rose by between 10 and 31 cents.
“The AWEX Eastern Market Indicator (EMI) gained 5 cents for the series, closing at 1324 cents/kg clean,” AWEX said.
“Due to a weakening Australian dollar, the A$ dropped nearly a full cent from the previous series, the EMI when viewed in US dollar terms lost ground.
“The EMI dropped 9 US cents for the week, closing at US962 cents.”
AWEX said the oddment market was the strongest performing sector in this series.
“General gains of between 10 and 20 cents in locks, stains and crutchings helped to push the three regional Merino Carding indicators (MC) up by an average of 13 cents.”
First stage processor buying resumes – AWI
Australian Wool Innovation trade consultant Scott Carmody said the week’s purchasing activity featured renewed buying from a large cross section of our first stage manufacturers operating on all wool type sectors.
“As those entities sought to replenish their raw material supply chains, price support flowed through to selling rooms with some handy price gains in AUD ensuing.
“A majority of sellers were comfortable with the prices on offer with a subsequent clearance rate of 90.7 percent being achieved,” he said.
Mr Carmody said trade reports early in the week identified a concentration of offshore clients attention on mainly the broader wool Merino fleece types (greater than 19 micron) and a heavier than normal enquiry focussing upon the skirtings and carding wool descriptions.
“Those reports were ultimately proven accurate, as general gains of 20 to 30 cents were achieved within all those sectors.
“Conversely, the superfine Merino and crossbred segments struggled in comparison to hold their values and some slight price falls eventuated.”
“At this point of the current season, there has been 100,444 more bales sold to the trade than at the same time last season.
“This is an additional 22.5pc of weight moving to product,” Mr Carmody said.
“Not only has the volume shifted up, but the value of our wool exports has increased far more with an estimated 180pc increase in dollars earned for the first third of the 2021/22 season compared to last.”
Mr Carmody said the first stage manufacturers came to the fore on all type sectors at this week’s auctions.
“Top makers, scourers and carbonisers all featured at or near the top of buyers’ lists and many of the traders and indent operators orders were also designated to these primary manufacturers.”
AWEX said although the three-day selling option is available in Melbourne, the offering can be accommodated over two days. Despite the two-day sale the national quantity increases for next week. There is currently expected to be 41,363 bales on offer.
Sources: AWEX, AWI.