Quality wool in demand

Season 18 - Week 44

Source: Australian Wool Exchange (AWEX)

The AWEX Eastern Market Indicator (EMI) rose by 17 cents for the series, closing the week at 1960 cents.

The AWEX Eastern Market Indicator (EMI) rose by 17 cents for the series, closing the week at 1960 cents.

The Australian wool market resumed in Week 44 after the Easter recess in Week 43.

Due to the week-long break in sales, quantities increased as wool accumulated during the break came onto the market.

There was 43,053 bales available to the trade.

The larger quantity did little to soften buyer demand.

This was perhaps because brokers are reporting a sharp decline in shearing activity, as many farmers are starting their annual cropping programs.

This predicted drop in fresh wool being available, has been reflected in the Australian Wool Exchange (AWEX) Four Week Forecast (FWF), which was issued this week.

Current figures show that Week 45 and 46 will have less than 35,000 bales.

While Week 47 will have less than 31,000 bales nationally.

Main buyer interest was in the best/good style wools.

Spirited bidding on these types helped to generally push prices up by 15 to 30 cents.

These increases helped to push the AWEX Eastern Market Indicator (EMI) up by 17 cents for the series, closing the week at 1960 cents.

The inferior style wools were not as well supported and lost further ground.

The EMI has now risen for two sales in a row after its previous long run of losses.

Worth noting, due to currency movement, when viewed in US dollar terms, the EMI fell by 21 US cents.

The crossbreds have again recorded healthy gains.

Of note was the 40 to 60 cent rise of 28.0 micron wool, pushing the individual Micron Price Guide (MPG) for 28.0 micron further into record territory in both Sydney and Melbourne.

After tracking downward for the previous six weeks, the merino cardings recorded positive movement.

Prices generally increased by 10 to 30 cents, pushing the three carding indicators up by an average of 15 cents.

As mentioned earlier, the national quantity reduces for the following week.

Currently there is 33,464 bales rostered for sale in Sydney, Melbourne and Fremantle.