Wool prices fail to maintain positive momentum

Sheep Central, November 22, 2019

AUSTRALIAN wool auction prices have faltered again, recording losses across the entire Merino range and reversing last week’s 19-cent gain in the benchmark AWEX Eastern Market Indicator.

In a result that showed the market was unable to maintain last week’s positive momentum, the AWEX EMI finished 19 cents lower at 1555 cents/kg clean.

The price decline met resistance from growers, with their brokers passing in 16.1 percent of the 38,297 bales offered, which was 2187 more than last week.

AWEX senior market analyst Lionel Plunkett said the increased prices of last week encouraged more sellers to the market and pushed the national quantity up.

However, compared to the corresponding sale of the previous season, the national offering was 10,000 bales lower, and to date, 12pc fewer bales have been put through the auction system this season.

“A weak finish from the Fremantle region late last week prompted a slip at the opening of the Eastern markets this sale,” Mr Plunkett said.

He said 19 micron and coarser wool recorded the largest reductions, and the individual Micron Price Guides for these wools fell by 8 to 35 cents in Sydney and Melbourne on Wednesday and continued to retract as the day progressed, falling by 22 to 44 cents in Fremantle late in the day.

“The softer tone carried into Thursday where the market continued to track downward but at a more subdued rate than the previous day.

“The individual MPGs across in the Eastern centres were mostly 10 to 20 cents cheaper, although the broader ranges of 21/22 microns showed some promise, closing marginally higher,” he said.

“Fremantle continued this trend and ended the week on an encouraging note, firming 5 cents clean dearer for most microns.

“Merino skirtings continued to find good support and closed ahead for the better types, particularly in the finer microns,” Mr Plunkett said.

“The Merino Carding Indicators had mixed results depending on the region but were in line with last week, while the crossbreds were slightly cheaper.”


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