AUSTRALIAN wool prices rebounded this week, with medium and broad Merino wool lifting by up to 130 cents a kilogram.
Landmark wool supply manager David Brook said it was a stunning reversal on the auction markets this week.
“After two weeks of declines, the AWEX Eastern Market Indicator lifted by 53 cents to 1512 c/kg.
“In the last sale before the one week Easter recess, all Merino wool prices rose strongly, with the largest increases seen for medium and broad Merino wool,” he said.
“Prices for these wools leapt by up to 130 cents.”
Mr Brook said crossbred wool prices also moved higher.
As the $A fell to just under 75 US cents, the lowest since mid-January, the EMI in $US terms rose by US33 cents to 1134c/kg clean. Brokers offered 43,026 bales and only 5.5 percent were passed-in.
Vigorous bidding at Sydney show
Mr Brook said the two-day Sydney sale was held at the Royal Easter Show and buyers confidently sought Merino wool of 19 microns and broader.
“Vigorous bidding pushed prices for these wools higher by 65-70 cents on Tuesday and a further 30-65 cents on Wednesday.
“Finer wools were also in demand, particularly Spinners and best style lots,” he said.
“The rising Merino tide helped lift prices for crossbreds, notably for the finer types which were 30 cents dearer, while broader wools were 5-10 cents higher. Demand for Locks and Crutchings was lacklustre and prices eased.
Melbourne focus on 19-22 micron wool
Mr Brook said demand from buyers intensified as the two day sale progressed in Melbourne, with their focus firmly on Merino wool of 19-22 micron wool. Prices for this wool lifted by up to 131 cents under this intense competition, he said.
“Well-prepared lots were in particular demand.
“Finer wools also enjoyed price gains of 55-75 cents.”
Fine crossbred wool was 30 cents dearer, while broader types were a little higher. Oddments were steady.
Fremantle market up 120 cents
Mr Brook said the recovery begun last Thursday continued this week in Fremantle, with very strong buyer competition realising large price gains of up to 120 cents.
“Prices lifted by 40-80 cents on Tuesday, driving the pass-in rate down.
“This momentum continued on Thursday with prices rising by a further 20-45 cents.”
Wools of between 19 and 21 micron enjoyed the best gains, he said, lifting by over 100 cents for the week. In contrast to this buoyant market, prices for locks and crutchings fell by 10-15 cents, Mr Brook said.