RENEWED demand for quality Merino wool mid-week lifted prices at auction this week.

The AWEX Eastern Market Indicator closed six cents higher on 1478c/kg clean, brokers passing in 9.1 percent of the 24,018-bale offering in Sydney and Melbourne.

The EMI in $US terms lifted 27 cents to US1115c/kg with the $A-US exchange rate up 1.53 cents to US75.42.

AWEX senior market analyst Lionel Plunkett said the EMI fell a further 5 cents on the first selling day this week as the Sydney market lost 20-30 cents in the 19 micron and finer sector, bringing prices closer in line with Melbourne.

“Although the EMI recorded a small fall, due to the rise in the Australian dollar, the EMI actually recorded an impressive 19 cent rise in $US terms.”

There was a complete turn-around on the second day of selling, with buyers scrambled to try find value in a rising market, MR Plunkett said.

“All types and descriptions experienced rises, generally between 15 and 30 cents with better style and spec wools enjoying the largest gains.”

Mr Plunkett said the skirting market followed the lead of the fleece, with prices dropping on the first day, but generally recouping those losses on the second day.

“Main buyer interest continues in wools containing less than 5pc vegetable matter or lots possessing excellent test results.”

Mr Plunkett said the crossbred market experienced general increases of 5 to 10 cents in Sydney, compared to general decreases of 5 to 10 cents in Melbourne. A very limited number of cardings remained generally unchanged for the week, which was reflected in the two carding indicators experiencing very little movement, he said.

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Buyers keen to lift inventory

AWI’s weekly market report said with available wool quantities down due to Fremantle not having enough wool to offer and the AUD strengthening significantly against the USD and Euro, most thoughts initially centred firmly around a cautious approach to any purchasing.

“Primarily, the price movements early in the week were all negative as levels decreased further in the Merino sector.

“Buyers were not convinced the basis for fresh trade had been met.”

AWI said the small amount of fresh business intent that had been steadily rising since the end of last week triggered a reversal of some significance, albeit not across the entire offering.

“What did change though was buyer sentiment, as almost all operators were suddenly keen on inventory acquirement and closing out of their outstanding open positions.”

AWI said lots testing FNF (free to near free – less than 1pc vm) of all microns were being chased hardest, causing the majority of the rises.

Fremantle joins Sydney and Melbourne on the sale roster next week and currently just over 33,800 bales are scheduled for sale.

Click here for the latest AWEX Micron Price Guides.

Sources: AWEX, AWI.