TRADERS filling outstanding contracts helped lift wool prices at Australian auctions this week.

The Australian Wool Exchange said the market recorded an overall positive result this week, pushing higher following four successive falls.

AWEX said the 27,169 bales offered nationally, 3762 fewer than last week, was the smallest national weekly total of the current season and the smallest since June last year (Week 49).

“In this week, Fremantle was not in operation, the national offering was 26,897 bales.

“After this Week 49 figure, the next smallest sale was back in 2020,” AWEX said.

AWEX said the smaller offering this week attracted good widespread competition, pushing prices higher from the outset.

“Although the strongest demand continued to be on the higher yielding lots, particularly those possessing favourable additional measurement (AM) results, with such a limited selection of these types, the lesser style types and wool with less favourable (AM) results also benefited from the rising market.

“On the opening day, all the published individual AWEX Micron Price Guides (MPGs) across all three centres posted upward results,” AWEX said.

“The accompanying green numbering a welcome sight to many.

“The Merino fleece MPGs added between 5 and 54 cents,” AWEX said.

“The crossbred and skirting markets both trended higher.

“The benchmark Eastern Market Indicator (EMI) added 10 cents for the day.”

AWEX said this was the largest daily rise in the EMI in nine selling days.

“The EMI also managed a US2 cent increase.

“This was the first time the EMI rose in both Australian (AUD) and US currency terms since the 19th of March.”

On the second day, AWEX said the market again trended higher.

“The EMI rose again in both AUD and US terms, adding 4 and 3 cents respectively.

“The EMI finished the series 14 cents higher, closing at 1203 cents/kg clean.

Chinese top makers beaten regularly – AWI

Australian Wool Innovation trade consultant Scott Carmody said wool auctions produced some good results this week for sellers.

“Local price levels received a general 1.2 percent increase as trader buyers returned to their place at the top of auction purchase lists.

“Several price determination factors were at play this week, but the general consensus was that the highest priority was fulfilment of outstanding contracts,” he said.

“This forced price rises into the local sale rooms as trading exporters quite often had to outbid the top makers and indents in order to meet their shipment obligations.”

Mr Carmody said China’s largest top makers remained very interested to stay strong in the market, but the strength of competition saw them being regularly beaten for price on wools they had bought readily the week prior.

“The more dominant indent orders and vertical manufacturers buy orders took their prompt requirements for mostly the better end wools in the offering.

“Traders followed where they needed to and thence the first stage users.”

Mr Carmody said the positivity of this week’s markets has been welcome but more importantly, needs to continue to provide confidence to all.

“Of most interest this week were better Merino wools finer than 19 micron.

“In this instance, “better” meaning good to best style whilst exhibiting higher staple strength and higher yield measurements,” he said.

“Whilst subsequent micron price guides saw rises of 30 to 50 cents clean, these top end wools were a full 50 to 80 cents dearer, particularly finer than 17.5 micron.

“Almost exclusively, these wools were purchased in volume by Chinese and Indian users.”

Mr Carmody said all other Merino wools sectors were around 15-20 cents higher, as was the crossbred wool type segment.

“Cardings were largely maintained, but the Melbourne carding indicator was the only anomaly for the week by being the only negative price guide (-28c) across all centres and types.”

Mr Carmody said the falling supply numbers have all buyers of Australian wool continuously looking at their strategies on the buy and sell sides.

“The most obvious decline in the Australian market at present is the lack of wools generally suited to European worsted use.

“The lack of returns for several years now has seen growers of this type of speciality wool look to other wool sectors or in some cases, other on farm enterprises,” he said.

Next week there is expected to be 28,346 bales on offer nationally, with the WA centre at Fremantle selling just one day again on Tuesday.

Sources – AWEX, AWI.