Markets

Wool prices ease further despite lower bale offering

Sheep Central, September 25, 2015

wool bales dec15-14WOOL prices eased further this week, with the AWEX Eastern Market Indicator closing 6 cents down to 1228 cents clean.

AWEX senior market analyst Lionel Plunkett said the small national offering of 33,127 bales, 5643 bales fewer than last week, included a designated superfine sale in Sydney.

“The market continued the trend from last week and lost further ground during this series,” he said.

Most price movements occurred on Wednesday, the opening day for all three auction centres – Sydney, Melbourne and Fremantle.

Brokers passed in 8.71 percent of the offering. With the Australian-US dollar exchange rate at US70.01 cents, down 1.89 cents, the EMI in US dollar terms was 28 cents lower on 860 cents.

“There were steady losses recorded throughout most of the Merino sector on the day, ranging from 5 to 15 cents on the east coast, to as much as 30 cents late in the day in Fremantle.

“Thursday was more positive, where prices generally firmed across all microns,” Mr Plunkett said.

“Some slight weakness was noted in Sydney. However, this was isolated to a small range around 19-microns. All other microns were around 5 cents dearer.”

Mr Plunkett said stylish superfine types attracted good competition during the week and registered generous premiums over lower spec types.

“Merino skirtings followed the fleece lower, drifting 10 cents over the two days.

“Crossbreds were generally quoted 10 cents cheaper apart from the finer types (25/26) out of Melbourne which firmed slightly.”

Mr Plunkett said the 28 micron wools appeared to have lost their upward momentum; this week was their third consecutive week of falls.

“The reasonably limited Merino carding sector still maintained buyer interest, despite the negative tone elsewhere and closed in line with last sale.”

Mr Plunkett said the Australian dollar lost ground progressively during the sale and continued to tumble late on Thursday after wool auctions had finished, heading towards fresh six-year lows at US69.5 cents.

Source: AWEX.

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