ONLY well-prepared best spinners and top making Merino fleece wools held their value in Australian auctions this week and growers withdrew more wool as prices edged lower.
The Australian Wool Exchange said the weaker tones evident at the end of the previous selling series have carried into this week, resulting in overall losses in the market, as the national offering increased by 6876 bales to 35,119 bales.
“Buyer sentiment was not as strong as in the previous series and as a result the prices being achieved were well below the close of last week.
“By the end of the sale the individual Micron Price Guides (MPGs) in the eastern centres for 17 micron and coarser wool lost between 6 and 50 cents,” AWEX said.
“On the back of these losses the AWEX Eastern Market Indicator (EMI) fell by 18 cents for the series, closing at 1332 cents/kg clean.”
Brokers withdrew 20.7 percent of the offering, a 6pc lift in the passed-in rate.
AWEX said the market finished with some positive signs, with Sydney on the final day recording a slight overall increase for the final day, pushing the local indicator marginally higher.
“Fremantle selling at last recorded some solid gains, helping the Western region indicator add 9 cents for the day and this 9-cent increase helped to push the Fremantle region into an overall gain for the series (5 cents).
“Although the market has lost ground over the opening weeks of the new season — the EMI has lost 91 cents since the start of the 2021/22 selling season, a 6.4pc drop — it is worth highlighting that the market is still trading well above the levels being achieved 12 months ago,” AWEX said.
“When compared to the corresponding sale of the previous season, the EMI is 474 cents higher, an increase of 55.2pc.
“When we compare individual MPGs over this time, the 17 micron Southern MPG, for instance, the higher prices on offer are further highlighted.
“The 17 micron MPG in Melbourne is 1085 cents higher than this time last year, equating to an 81pc increase.”
Better prepared spinners and top making Merinos performed – AWI
Australian Wool Innovation trade consultant Scott Carmody said the Fremantle centre did not offer last week so the gains that occurred in eastern states were not recorded.
“Subsequently the softer prices on offer in the east were not transferred to the west as just minor adjustments to forex rates were made to the A$ WA pricing.”
“In a designated superfine wool sale week, the better prepared and specified spinners and best top making Merino wools achieved similar prices to the season long established values.
“Those wools sold 175 to 200 cents above the general micron indicator quotes,” he said.
“All other types away from these though followed the lower bids down that were available from the overseas users, highlighting the hand to mouth nature of the current trading environment and sensitivity.
“The tone and competition that eventuated in the sale rooms was slightly better than anticipated,” Mr Carmody said.
“The local traders and a large Chinese top maker were bearing the purchasing load on most Merino wools.
“This assisted in keeping any falls to a minimum.”
Mr Carmody said Italian interests continue to dominate the better superfine sector.
Next week the rostered quantity increases slightly, with 37,123 bales currently expected to be offered in Melbourne, Fremantle and Sydney.
Click here to see the latest AWEX Micron Price Guides.