BUYER confidence shifted online to Wooltrade last week as the physical market started to stabilise.
Wooltrade sold 65 bales last week, with the top-priced two-bale line of 15.5 micron fleece wool making 1464c/kg clean (1045c/kg greasy). The line yielded 71.4 percent, an average staple length of 70mm, tensile strength of 36 Newtons/kilotex and with 0.2pc of vegetable matter content.
Wooltrade market operation office Tom Rookyard said the Australian wool market continued on its path of stabilization last week, with the AWEX Eastern Market Indicator losing 9 cents on Wednesday, then gaining 3 cents by the close on Thursday afternoon to finish at 1228 c/kg clean.
“To look at the same point 12 months ago, the AWEX EMI was then sitting at 1023 cents, thus we are now 205 cents stronger.
“Additionally, the market is sitting just above the point when the market closed for the winter wool recess break,’ he said.
“At last week’s physical auctions the pass-in rate sat around levels of 8-9 percent across both days, which signals growers are still relatively happy with current levels, compared to where they sold 12 months ago.”
On Wooltrade last week, a nine-bale line of 17.7 micron fleece sold for 1392c/kg clean (1045c/kg greasy). It yielded 71.4pc, with a mean staple length of 85mm, tensile strength of 36N/kt and 0.2pc VM.
A 12-bale line of 18.8 micron wool yielding 65.6pc, with an average staple length of 86mm, tensile strength of 29N/kt and 1pcd VM sold for 1345c/kg clean, or 888c/kg greasy.
A five-bale line 19.6 micron fleece yielding 50.1pc, 77mm mean staple length, 31N/kt tensile strength and 2.8pc VM made 1299c/kg clean, or 651c/kg greasy.
Mr Rookyard said fine skirting and carding lines were well-supported, with five-bale line of 16.9 micron 86mm long Merino brokens branded Moroona/Carngham offered by Elders making 1350c/kg clean or 8767c/kg greasy.
Mr Rookyard said the physical auction roster has an unusual selling roster this week caused by the Victorian AFL grand final public holiday on Friday. This means the Melbourne sales begin a day earlier than Sydney and Fremantle. Melbourne wool will sell on Tuesday and Wednesday, Sydney sells on Wednesday and Thursday, and Fremantle on Wednesday.
“It really means that buyer have three days to spread their buying opportunity, and thus the market is unlikely to gain any considerable momentum.
“The improvements that the market saw last Thursday could signals that a bottom has been found and thus a stable outlook for the Australian wool market, which has also been helped by the weakness of the Australian dollar, which is at the same levels as in 2009,” he said.
Click here for last week’s Wooltrade top prices summary.
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