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Weekly commentary on the wool market from AWI trade specialists.
All categories of wool on offer at Australian Wool auction sales sold strongly to the sellers advantage this week. Sales featured some excellent quality (mainly super fine Merino) wools ex Tasmania and these wools attracted a healthy premium and sold predominantly to the traditional Italian weavers. Significantly, historical highest price levels were reached within the crossbred sector. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) advanced 24ac for the week to 1968ac clean/kg. In US dollars (USD) terms, the EMI gained 21usc to close at 1401usc clean/kg.
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Australian wool auctions sold strongly and to dearer levels this week. Nearly all categories on offer produced sale results that were very firm or slightly dearer on their established values, except for the carding types which sold to the buyers favour throughout for most descriptions. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) advanced by 10ac for the week to close at 1944ac clean/kg, When the EMI is measured in USD, a loss of 26usc or 1.82% was recorded to 1380usc clean/kg, eliminating 70% of last weeks’ gains in that indicator.
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In somewhat of a surprise to most trade participants, Australian wool auctions sold generally dearer this week. Pre-sale discussion centred around the continuing state of new volume forward business being hard to come by at fair and reasonable current market levels. Most expected a softening as China heads into their New Year recess over the next two weeks, but this largely failed to eventuate as the major buyers were keen to acquire volume.
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Australian wool auction sales sold under a rather mundane atmosphere this week. Market results were directly opposed by wool type as the long wool Merino sector remained very well sought and appreciated by a few cents generally, while all carding and crossbred descriptions failed to hit last week’s quotes and fell away in price somewhat. In general, Merino types were anything from unchanged to 15ac dearer, crossbreds 10 to 30ac lower and cardings recorded a 15ac loss.
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The good start to the 2019 year continued at this weeks’ Australian wool auction sales, with fine crossbred wools the recipients of the best price gains. Large volumes of drought affected super fine (<18.5u) Merino wools somewhat hampered the upward progress of that category and prices came off the boil there. Their broader counterparts of 19 to 22 micron Merino spent the week in consolidation mode as these descriptions tried to more closely align the values between the selling centres of similar wool brackets.
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