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Sydney wool sales close positive first-quarter

Terry Sim, September 26, 2014
Wonwondah woolgrower Kevin Pymer, right, with his grandson Joel in Melbourne this week.

Wonwondah woolgrower Kevin Pymer, right, with his grandson Joel in Melbourne this week.

Australia’s wool market closed mostly firm to slightly dearer for sound spinner types yesterday, with superfine wools selling well in Sydney, some medium to broad Merino types lifting up to 10 cents in Melbourne, and fine and medium wools gaining 5-10 cents in Fremantle.

Crossbred wools were quoted by AWEX as firm where there were sufficient quantities offered.

The AWEX Eastern Market Indicator finished on Thursday 1023 cents, up one cent on Wednesday, and firm on last week, with 9.6 per cent passed in for the week.

AWEX senior market analyst Lionel Plunkett said the sale marked the end of the first quarter (Jul-Sept) of the current wool selling season, in which the AWEX-EMI made a seven-cent gain (+0.7pc).

“Over the last 10 years only three first quarters have closed in positive territory.

“The second quarter (Oct-Dec) has generally been more successful, rising six out of the last 10 years,” he said.

Elders district wool manager at Horsham, Roly Coutts, said the market in Melbourne as bullish on good types with low mid-breaks.

“It didn’t matter if they were tender or sound, as long as they had most of the breaks in the tip or the base of the staple,” he said.

“Pieces, bellies, locks and crutchings were firm.”

Wonwondah grower – “mutton’s up, wool’s back”

Elders Horsham client and Kevin Pymer sold 90 bales of wool from his pure Merryville-blood flock in Melbourne yesterday and was “reasonably happy” with the result for his low mid-point break wools, but buyers discounted high mid-point break lines.

The Wonwondah woolgrower and cropper sold 18.6 micron August-shorn wool from two-year-old ewes for 856c/kg greasy. The line found favour with buyers for its yield of 70.1 per cent, tensile strength of 38 Newtons/kilotex, length of 90mm, 1pc vm and a break that was mostly (77pc) on the staple base.

“We were pretty happy with that because they had a very good first lambing (95pc marked) in April-May,” Mr Pymer said.

But a line of 17.5 micron weaners’ wool with a yield of 72.4pc, tensile strength of 40N/kt, 0.5pc vm and length of 97mm was discounted to 810c/kg greasy because it had a high mid-point break (80pc).

Mr Pymer said the season in his area was terrible, with a lack of rain and frosts hitting crops hard.

“We’re basically two weeks off a full-blown drought up here.

“We’ve had just eight inches of rain for the year, when we normally would have had 15 inches by now,” he said.

But Mr Pymer said he recently sold surplus ewes for $90.

“So the mutton’s up and the wool’s back.”

Superfine, high tensile and non-mulesed lines sell well in Sydney

Mr Plunkett said a good selection of superfine wool in Sydney on Thursday, including four 1PP-accredited lots, preserved buyer support for spinner and high tensile strength best-style types in the 18 microns and finer range.

“As the sale progressed most microns trended to sellers’ favour with buyers targeting the higher Newtons/kilotex and non-mulesed lots, while the high mid break types still discounted have maintained previous levels,” he said.

Mr Plunkett said Merino skirtings overall remained well-supported to close unchanged, despite some softening for the fine microns with 3 percent vegetable matter content.

It was a solid market for crossbred wools, with prices for the good offering leaving 26-30 microns types fully firm and unchanged, he said.

Locks sold firm and unchanged in Sydney, despite the washing types closing in buyers’ favour. Stains and crutchings also finished unmoved, Mr Plunkett said.

The 19.5-22 micron wools lift 5-10 cents in Melbourne

In Melbourne on Thursday, Mr Plunkett said prices for the mostly broader selection of 19.5-22 micron wools, finished reasonably strong. Most descriptions closed the day ahead, including lower spec types, which have lacked support lately.

Mr Plunkett said the limited offer of finer micron wools attracted good competition.

“But the increases were more noticeable towards the medium-broader range where rises of 5 cents increased to 10 cents for selected types,” he said.

Prices for Merino skirtings were irregular with best length and style lots unchanged, while others were slightly cheaper. Crossbred wool sold generally unchanged. The locks and crutchings were 5 cents dearer.

Finer microns gain 5-10 cents in Fremantle

In Fremantle on Thursday, the small two day sale of 6818 bales concluded with some encouraging gains in value.

“The finer microns added 5-10 cents and the fine-medium wools, 19-20 microns, closed fully 10 cents dearer,” Mr Plunkett said.

“The medium microns also gained 5-10 cents, while the limited supplies of broader types ended the day fully firm on yesterday’s (Wednesday’s) rates.”

Mr Plunkett said Merino pieces ended the day with the lower 2-3pc vm and finer types slightly dearer, while the remainder, including the faultier 5pc vm types closed fully firm.

Locks and crutchings were in limited supply and closed firm on Wednesday’s rates. There was insufficient crossbred wool to quote.

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