PRICE falls for crossbred wool prevented an overall market increase in auctions across the nation this week.
The Australian Wool Exchange said the market recorded an overall loss by the barest of margins – with the AWEX Eastern Market Indicator falling one cent to 1128c/kg clean.
Although a loss was recorded there were positives to be taken from various aspects of the market, AWEX said.
“The market opened softly and by the end of the first day many of the individual Micron Price Guides (MPGs) for Merino fleece finished lower, the movements ranged between -19 and +6 cents.
“The AWEX Eastern Market Indicator (EMI) lost 7 cents for the day.”
On the second day the market rallied, and prices generally rose, AWEX said.
“In the east, the MPG movements ranged between -1 and +22 cents, and the EMI rose by six cents for the day.”
Strong widespread demand helped push Fremantle to a higher for all Merino fleece types and descriptions.
“Here the MPGs rose by between 15 and 22 cents.
“The rises were enough to ensure that all western MPGs finished in positive territory for the week,” AWEX said.
“This strong finish has set the market up for a strong opening next week.”
Another positive this week was that the market performed very well when viewed in US dollar (USD) terms, AWEX said.
“The majority of Australian wool is traded in USD terms, with a strengthening Australian dollar (the AUD rose by 0.83 cents since the close of last week) when viewed in USD terms the EMI recorded a 9 US cent increase, closing the week at US723 cents.
“The crossbred sector struggled this week, the movements in the MPGs between 26 and 30 micron ranged between -13 and -20 cents, the losses in these MPGs prevented the market from recording an overall increase.”
Best superfine Merino spinners types head to Italy – AWI
Australian Wool Innovation trade consultant Scott Carmody said a good volume of the highest quality superfine Merino best top making and spinners clips were available in Melbourne and Sydney.
“These wools received some handy returns although the buying intensity is not evident.
“Neither are the prices being offered from Europe near the levels normally expected above the commodity types pricing,” he said.
“In fact, some of the best top making wools 18.5 micron and finer will find themselves on a boat ride to China this year and not the usual European destinations.
“The best superfine Merino spinners types though remained firmly in the sights of the Italian premium customers of Australian wool,” he said.
“These wool sale lots carrying a high curvature reading (95+) and a non-mulesed certificate stood out on quote sheets, and were consistently quite a few dollars a kg over their counterparts of the same micron and other tests that on the surface were similar in results.”
Mr Carmody said after a few months of price recovery, crossbred types appear to slightly in the doldrums once more and fell away 15 to 20ac/clean kg this week.
“Despite the gloomy talk around the carbonizing types, the oddment and cardings descriptions hung onto their values and managed to add a few cents to quotations across many types.”
Next week’s offering is forecast to increase. 45,419 bales are currently expected to be offered in Melbourne, Fremantle and Sydney.
Click here to see the latest AWEX Micron Price Guides.
Sources – AWEX, AWI.