Markets

Wool prices climb back 10-15 cents on better exchange terms and low bale offering

Sheep Central, June 17, 2016

Wool sales Landmark1 MelbourneAUSTRALIAN fleece wool prices lifted 10-15 cents this week, breaking the downward trend of recent weeks.

AWEX senior market analyst Lionel Plunkett said the benchmark AWEX Eastern Market Indicator gained 9 cents to finish the week at 1279 cents/kg clean.

The positive lift in prices came as the Australian dollar traded slightly lower during the week at US73.93, putting the EMI in $US terms at 946 cents, down US3 cents.

Mr Plunkett said sale resumed at Fremantle after a pause last week, but the totals in all three centres were reasonably low, making it the smallest three-centre offering in 10 months.

“As with most recent offerings stylish/good spec wools recorded the highest gains, but this week saw the average/lower spec wools attract widespread buyer support to finish the week with solid gains.

“Gains were experienced across all micron ranges, with the fleece market closing generally 10-15 cents dearer when compared to last week’s close,” he said.

Prices for Merino skirtings followed the lead of the fleece market making solid gains. Low vegetable matter lots (under 2 percent) were highly sought after and in some cases prices were extreme, Mr Plunkett said. Merino cardings were the only poor performers for the week drifting marginally to close the week 5-10 cents easier when compared to last week.

Mr Plunkett said carbonising locks were most-affected this week, finishing 10-15 cents cheaper.

Fremantle has a one-week recess next week which will bring the national offering back down to a total of 24,000, the smallest offering in 12 months. Including next week there will be four more auction weeks before the annual three week recess commences.

Source: AWEX.

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