Season 17 – Week 45
Source: Australian Wool Exchange (AWEX)
The Australian Wool Market has exploded into unchartered territory in Week 45. Although overall losses were recorded in the previous sale, positive movement was experienced in the Western Region toward the end of the week.
Buyer concern over securing quantity in coming weeks, combined with the weakening of the Australian dollar has helped continue this positive trend.
These factors helped to create very strong buyer demand. The result was sharp upward movements.
Despite the offering again consisting of a large percentage of lower yielding, lesser style lots, price increases were felt on all types and descriptions, across the entire merino spectrum.
By the end of the week, wool was generally selling at levels 60 to 90 cents above those achieved at the previous sale.
The Benchmark Eastern Market Indicator (EMI) rose by 55 cents, the largest weekly increase since February.
It closed at 1891 cents, easily surpassing the previous record of 1847 cents set last month.
The individual Micron Price Guides (MPGs) for 20.0, 21.0, 22.0 and 23.0 also set new records, beating their previous highs by over 40 cents.
The skirting market followed the lead of the fleece, also managing strong gains for the week, generally 25 to 50 cents.
The largest increases were in wool 18.0 micron and finer, or wool carrying less than 3.0 percent vegetable matter.
The crossbreds had mixed results. 26.0 to 28.0 micron increased by 5 to 10 cents.
Notably, this pushed the 26.0 micron MPG to a new high. 30.0 to 32.0 were par to 5 cents easier.
A limited supply of oddments attracted excellent competition, pushing prices up by 20 to 40 cents, wool finer than 18.5 micron most affected.
This was reflected in the three Merino Carding Indicators (MC) rising by an average of 26 cents.
Week 46 quantities remain very similar. Currently there are 37,496 bales rostered.