Wool prices hold firm despite appreciating Australian dollar

Sheep Central, March 27, 2015

wool bales dec15-14Wool prices held firm in the lead-up to Easter with the AWEX-EMI posting a one cent rise to 1094c/kg despite the Australian dollar rising against the US currency this week.

AWEX senior market analyst Lionel Plunkett said the offering was expected to be a similar size to last sale but finished a couple of thousand bales short at 41,420 bales.

Brokers passed in 6.6percent of the offering as the Australian dollar gained US0.71 cents and the EMI in US dollar terms finished at US854c/kg, up nine cents.

Mr Plunkett said this week’s auctions commenced with the trend evident at the end of the previous sale continuing into Wednesday of this week.

“Prices were mostly only a few cents lower, although Fremantle lost 10 cents clean across most of the Merino sector.

“Thursday retraced the losses made on the previous day as a more positive mood swept over auction rooms,” he said.

Lower spec wools improve with better types

Mr Plunkett said lower spec wool types managed increases in line with the better types, especially in Fremantle where there were gains of 5 to 10 cents for all descriptions.

“The only consistent week-on-week trend was in Sydney where there were increases of a few cents across most of the Merino range.

“Merino skirtings followed a similar pattern and recorded only small changes for the week,” he said.

Support and price levels for these types remains fairly constant despite increasing levels of vegetable matter creeping onto the market, Mr Plunkett said.

Fine crossbreds improve by 5 cents

Crossbred wools showed some promise in the finer 25-26 microns, which increased by around 5 cents, Mr Plunkett said.

“The broader ranges generally tracked sideways and a number of the MPG’s closed unchanged for the week.”

Mr Plunkett said the Merino carding indicators extended their run into record territory with further gains of 5 to 10 cents this week.

“Just over 50,000 bales are expected at the final sale before the one-week Easter recess and includes a showcase auction at the annual Sydney Royal Easter Show in a temporary auction facility.”\

Source: AWEX


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