Markets

Premiums paid for stylish good tensile wool in post-recess sales

Sheep Central, August 11, 2016

Wool sales Landmark1 MelbourneSTYLISH wool with good tensile strength sold at a 100-cent premium to lower spec types in wool sales this week.

AWEX senior market analyst Lionel Plunkett said sales resumed in Melbourne, Sydney and Fremantle this week after the annual mid-year three week recess.

The national total of just over 52,000 bales was the largest since January and the largest post-recess opening sale in five years, he said.

“Prior to the recess the market rallied throughout June, but had run out of momentum and softened in the final sale before the break.

“This week followed on from that trend and the AWEX-Eastern Market Indicator drifted 14 cents lower to 1297 cents.”

The EMI in $US terms rose 1 cent to 1000 cents as the $A-US exchange rate rose 0.93 cents during the week to US77.09. Brokers passed in 7.6 per cent of the offering.

Mr Plunkett said the Merino fleece sector was the main drag on the market on the back of a large offering of these types totalling more than 31,000 bales.

“As with recent auctions the focus was on the stylish, better spec wools which still enjoyed strong interest, mainly in the finer microns where sale lots with superior test results held firm.

“Meanwhile the lower spec types (<35nkt) in these microns bore the brunt of the softer market and were marked down 20 cents each day,” he said.

“The end result was an opening up of the gap between the different strength categories.

“It was common on Thursday to see stylish 45nkt types selling to a 100 cent premium over lower style 35nkt types.”

Mr Plunkett said the medium/broader microns were less affected by the softer market and eased a modest 10 to 20 cents. Merino Skirtings mirrored the fleece sector with relatively good strength in their better types overshadowed by weaker prices for shorter and burrier/seedier (>5pc vm) types.

Mr Plunkett said crossbreds lost ground early before rallying on Thursday, with 30 micron wools in Melbourne lifting 30 cents. Merino cardings were one the worst performing sectors during the sale, losing as much as 40 cents over the two days, he said.

Click here to see the latest AWEX Micron Price Guide.

Source: AWEX.

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Comments

  1. Edward Wymer., August 12, 2016

    ” Stylish wool with good tensile strength sold at a 100-cent premium to lower spec types “. That is hardly news. It would be very disappointing if the price gap was less. woolman.biz

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