AUSTRALIA’S wool price benchmark this week reached its highest level this season and since May 2023, after strong supply risk-based buying influenced by currency changes.

The Australian Wool Exchange said auction wool market performed strongly in this sale series, recording price increases across all sectors.

The national offering reduced by 7194 bales to 32,598 bales and brokers passed in only three percent.

“From the opening lots in the eastern centres on the first day of selling there was strong buyer interest across all wool types and descriptions, resulting in immediate price increases,” AWEX said.

“The market then slowly but consistently rose all the way to the final hammer in the Western region.

“By the end of the day the individual Micron Price Guides (MPGs) for Merino fleece had risen by between 17 and 53 cents across the three selling centres,” AWEX said.

“The crossbred, skirting and oddment sectors all recorded small increases.”

AWEX said the benchmark AWEX Eastern Market Indicator rose by 22 cents, pushing back through the 1200-cent barrier, closing the day at 1,217 cents.

“This was the highest the EMI has been in the 2024/24 season and its highest point since January 2024 when the EMI hit 1220 cents.

“The price rises were heavily influenced by currency, so much so, that when viewed in US dollar terms the market dipped slightly.”

AWEX said the EMI lost US1 cent for the day, finishing at US755 cents.

“This ended the run of EMI rises in both currencies; however, it extended the run in AUD terms to four consecutive selling days of rises.

“The second day the rises continued but at a much more subdued rate.”

AWEX said the Merino fleece MPG movements ranged between unchanged and plus 24 cents.

“The other three sectors again posted small gains.

“The EMI added a further 8 cents, closing the week at 1225 cents/kg clean.”

AWEX said the EMI is now sitting at its highest point since May 2023.

Short supply situation mobilised buyers – AWI

Australian Wool Innovation trade consultant Scott Carmody said this week’s Australian wool auctions produced some of the better strength of competition seen for quite some time.

“The price gains extracted were largely forged on a measured, calm approach by sale room operators.”

He said Merino wools of all descriptions were a general 25-50c/kg clean dearer with the mid micron, more readily in demand traded wools of 18.5 to 20 micron being the most well sought.

“Once again the Fremantle market outperformed both eastern based selling centres and prices in WA by the close were 10 to 20 cents higher.

“The crossbred and carding sectors of the market also had a strong week, although gains were far more subdued in the 5-15 cent range.”

However, Mr Carmody said the often frenzy of bidding in similar bullish auction scenarios of the past were largely unseen.

“The pre-sale local and overseas buyer expectations of a dearer market were being met as auctions opened, so there was no apparent panic buying.

“Therefore, subsequent price gains were seemingly borne from largely economic – not emotional – derived results.”

Mr Carmody said covering off risk in our current short supply offerings was the modus operandi of most participants in the procurement side of the wool supply chain.

“Traders, manufacturers and indent operators were all similarly keen buyers at auction, and sold volumes shared evenly across all segments.

“The local sell side of the transaction were happy to take the extra values, evidenced by the very high 97pc of all wool offered being sold to the trade,” he said.

“Interesting to note was that markets closed at the highest price points for the week again, despite the AUD propelling upward at the end of the selling series by over 1pc.”

Next week the national offering is expected to rise, bolstered in part by the higher prices on offer in this series encouraging some sellers back to the market. There are currently 37,942 bales on offer nationally.

Sources – AWEX, AWI.