Wool prices reach new record level despite large offering

Sheep Central, November 17, 2017

WOOL prices firmed further this week to a new record benchmark level, despite brokers offering more than 50,000 bales nationally.

Australian Wool Exchange market analyst Lionel Plunkett said the recent strength in the market attracting the largest bale offering in three months of 50,648 bales.

Despite brokers offering 7216 bales more than last week, the AWEX Eastern Market Indicator lifted two cents from last week’s record level to another historic peak of 1683c/kg clean.

The large offering and strong prices pushed the value of the week’s turn-over to more than $96 million dollars, the largest since 2002, when 74,506 bales were offered in that week.

Mr Plunkett said 56 percent of the national bale total this week was offered in Melbourne — its largest sale since January — and pushed that centre out to a three-day sale, resulting in a Melbourne-only sale opening the week on Tuesday.

“The market continued its recent form with solid rises early in the week before a downturn later in the series.”

Mr Plunkett said the benchmark AWEX EMI managed its new record high despite easing back 6 cents on the final day.

“Support generally reflected the selection which lacked the more stylish types seen in previous sales.

“Subsequently there were mixed results with prices tended to be driven by the quality of each micron category.”

Mr Plunkett said after making a firm start Merino skirtings eased back late in the week to finish slightly lower. Crossbreds continued to show volatility, falling sharply and closing as much as 50 cents lower.

Merino cardings made record highs again during the week, although there was some slippage on the final day. Another large offering is expected next week with almost 49,000 bales forecast to be offered.

Click here for the latest AWEX Micron Price Guides.

Source: AWEX.


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