Markets

Wooltrade attracts keen buyer interest last week, but has the market peaked?

Sheep Central, May 18, 2016

WOOLTRADE again received keen buyer interest last week, selling 1376 bales online.

Wooltrade market operations supervisor Tom Rookyard said last week’s sales took May’s tally to 2910 bales traded online.

For the third successive week the wool market made strong gains last week, he said.

“A softening Australian dollar, helped by dwindling auction supplies put the AWEX Eastern Market Indicator at its highest point since mid-January; last Thursday the indicator hit 1287 cents.”

The top-priced lot on Wooltrade last week was a two-bale line 15.6 micron Merino weaners fleece that sold for 1733c/kg clean, or 1355c/kg greasy. The line yielded 78.2 percent, with an average staple length of 86mm, a tensile strength of 50 Newtons/kilotex and 0.8pc vegetable matter content. It was branded JMSLO/New England and was offered by Elders Newcastle.

In other Wooltrade sales last week, 17 micron fleece sold for up to 1609c/kg clean or 1154c/kg greasy, and 18.2 micron fleece made up to 1538c/kg clean, or 940c/kg greasy. A 19.2 micron fleece line sold for 1499c/kg clean, opr 1100c/kg greasy, and a 20 micron lot made 1444c/kg clean, or 1040c/kg greasy. Wooltrade sold a 21.1 micron line for 1403c/kg clean, or 960c/kg greasy, and a 22.3 micron fleece lot made 1403c/kg clean, or 950c/kg greasy. A 22.3 micron line sold for 1390c/kg clean, or 945c/kg greasy.

Fine crossbred fleece, 23.9 micron, sold for 1074c/kg clean, or 741c/kg greasy. A 15.4 micron, 30mm long Merino carding pieces line made 1484c/kg clean, or 855c/kg greasy. A 19.4 micron carding lambs fleece line sold for 1304c/kg clean, or 850c greasy.

Mr Rookyard said early reports indicate another strong market this week.

“Additional to good buyer enquiry on Wooltrade and a further weakening dollar, this week there isn’t a wool auction at Fremantle.

“One point to note, however, is that two thirds of the market gain was on last Wednesday,” he said.

“The market appeared to have slightly slower rise on Thursday.

“Perhaps we are at the current market peak.”

Click here for Wooltrade’s latest Top Prices Summary.

Source: Wooltrade.

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