AUSTRALIAN wool prices recovered slightly this week, with improvement in Merino and crossbred values, as the limited supplies matched current demand.
AWX senior market analyst Lionel Plunkett said the Australian wool market performed strongly this week with all sectors recording positive movements.
He said the national offering fell to 18,828 bales.
The EMI rose by 15 cents for the series, closing at 1170c/kg clean, an increase of just over 1 percent.
“Due to a strengthening Australian dollar the increase in US$ terms was higher, a US 21-cent increase, which equated to a 2.7 percent rise, Mr Plunkett said.
“Many sellers were keen to accept the higher prices, resulting in a passed in rate of only 7.9pc.
“This was 4.7pc lower than the rate of the previous week.”
Mr Plunkett said due to the lack of quantity Sydney and Fremantle only required one day of selling.
“Melbourne and Sydney opened proceedings on the first selling day and from the opening lot it was apparent that buyer sentiment was greatly improved.
“This stronger sentiment resulted in price increases across all Merino fleece types and descriptions,” he said.
The individual Micron Price Guides (MPGs) rose by 3 to 32 cents.
“On the back of these rises, the AWEX Eastern Market Indicator (EMI) gained 17 cents for the day, climbing to 1172 cents,” Mr Plunkett said.
“On the second selling day, it was Melbourne and Fremantle in operation.
“Melbourne recorded minimal movements for the day, the MPGs all traded within 6 cents of the previous day and the EMI dropped 2 cents,” he said.
“Fremantle enjoyed the gains experienced in the other centres on the previous day, pushing the Western MPGs up by 29 to 38 cents.”
Mr Plunkett said the crossbred sector also lifted. The main rises in the 26-28.0 micron range and the MPGs for these wools rose by 9 to 20 cents.
“The oddments recorded healthy gains for the second successive week.
“Locks, stains and crutchings generally rose by 20 to 40 cents.”
Market trying to find a level as supply matches demand
Rodwells wool manager Michael de Kleuver said the market was “trying to hang on at these numbers.”
“There is not much wool for sale, not a lot of business around, but just enough to get it to hang in there at these low volumes.
“I think it is trying hard to find some stability.”
However, Mr de Kleuver said the industry was accumulating wool in the background.
“I think that grower stockpile is continuing to grow, I think everybody has got wool around them.”
Mr de Kleuver said many farmers, especially in the south, who have had a good season and returns from sheep meat, are opting to store wool for later sale.
The Fremantle region does not have a sale next week, with only Melbourne and Sydney selling, the national offering reduces to 17,136 bales.
Click here for the latest AWEX Micron Price Guides.