Prices continue upward run at Australian wool auctions

Prices at this week’s Australian wool auctions continued their upward run with some very large gains being recorded at the finer end of the Merino offering. The Eastern Market Indicator (EMI) closed almost 2 per cent higher again to close selling for the week at 1427 ac/clean kg, which is just 22ac short of the season high Australian dollar (AUD) price.

The substantially weaker Australian dollar (AUD) against the US dollar and euro provided almost all of the entire average market value gains, according to the Australian Wool Innovation (AWI). As has been the case since the New Year, demand remains remarkably stable as witnessed by the steadier prices when converted to USD, AWI said in its commentary for the sale week 45 of the Australian wool marketing season.

Prices at this week’s Australian wool auctions continued their upward run with some very large gains being recorded at the finer end of the Merino offering. The Eastern Market Indicator (EMI) closed almost 2 per cent higher again to close selling for the week at 1427 ac/clean kg, which is just 22ac short of the season high Australian dollar (AUD) price.

The USD EMI shifted slightly (-0.4 per cent) lower due to the advantageous forex rates available in that currency and closed at 992usc/clean kg. The Western Market Indicator (WMI) appreciated 2 per cent to jump over the 1500ac mark to conclude sales at the 1502 ac/clean kg level. There was a national clearance of 91 per cent of all wool offered.

“There has only been a slight drop in activity over the past month from China, due to the logistics and ongoing pandemic management issues currently being dealt with in that nation. Despite this softening, other significant users from India and Europe have stepped up their operations and are seemingly recovering towards near pre-COVID levels of operation. This is particularly evident with the competition being seen on sale lots with better specifications. This is mainly on, but not limited to, the wool that has better characteristics of style and strength and lower levels of vegetable matter (vm),” the AWI commentary said.

With Chinese indents and one of the major Chinese top makers providing stiff opposition to the largest traders, most sections were extremely active in purchasing this week. As a result, Merino wools finer than 18.5micron gained 40 to 60ac and 19 and broader gained 30ac. Crossbreds and cardings were by no means neglected and that type sector added 15 to 20ac to their values.

The price gains now offer a more attractive proposition to growers who are holding wool with them. So, next week’s sales will see increased volumes and around 46,000 bales would be on offer during the two days of sale.

Fibre2Fashion News Desk (RKS)