Wooltrade market operations manager Tony Benson said the top price for the week at 1460c/kg clean was for a stylish three-bale Merino fleece lot offered by Elders Rural Services for client KOORNONG.
The line measured 16.2 microns with 0.6 percent vegetable matter content, a 71.9pc yield, 83mm staple length and tensile strength of 38 Newtons/kilotex.
“The 18 micron Merino fleece was selling for up to 1314c/kg, about 15 cents above the indicator for good spec wool, the 20 micron fleece lots made up to 1185 cents, but most sold at 1170c where the indicator is, and 21 microns were just a whisker under that price.”
Short term spike, long term risk
Mr Benson said the AWEX Eastern Market Indicator spiked seven cents to finish at 1092c last week, nearly 40c up on March 2014.
“But back then just three weeks passed and the EMI was at 993c. Ouch!”
The good news is that demand on Wooltrade was brisk on Monday, but he couldn’t see the market following suit this week, Mr Benson said.
“In fact quite the contrary, with a sustained lower Aussie dollar-US$ exchange rate the market in the short term is looking healthy, but further out there seems to be growing competition from competing fibres like cotton and synthetics in terms of price.
“Taking some of the risk out of the market might be a smart decision right now by looking at forwards, basis contracts or selling your store held wool on Wooltrade to catch current market spikes.”
More price movement to come
Mr Benson said there is a good chance this week of 20 and 21 microns testing 1180c/kg clean, based on early sales.
“The 22 micron fleece did not reach 1150c last week, with a top price of 1143c for a 22.5 micron lot, still a very solid result for this lot.
“No crossbreds or carding lots sold last week as they are on short supply on Wooltrade, but on the AuctionsPlus Wool Auction these lots were again red hot with 5-10c greasy added on,” he said.
“It looks like another little spike this week.”
Source: Wooltrade, AuctionsPlus.