Market continues to rise

Season 19 - Week 2

Source: Australian Wool Exchange (AWEX)

Week 2 on the Australian wool selling program is the final sale before the annual mid-year three-week recess.

This sale represents the final meaningful opportunity for buyers and exporters to secure wool until August.

It is also the final chance for exporters to finish any orders needing to be shipped over the coming weeks.

These factors have helped to keep the market on an upward path, following on from the price increases experienced during the previous series.

Due to seasonal conditions, the size of the Australian wool clip is expected to decline again this season.

This sale there was 34,080 bales rostered for sale, this now means that when compared to the corresponding sale of the previous season, the amount of wool offered at auction has fallen by 19,350 bales, a reduction of 22.9%.

Positive buyer sentiment was again evident from the start of the series.

Main buyer focus was on the better style lines and wools with favourable additional measurements, however, all types and descriptions recorded increases for the week.

These rises were reflected in the individual Micron Price Guides (MPGs) which generally gained 10 to 40 cents for the series, with the North and West enjoying the biggest lifts.

Due to seasonal conditions, the size of the Australian wool clip is expected to decline again this season.

Due to seasonal conditions, the size of the Australian wool clip is expected to decline again this season.

The rises in the MPGs helped to push the AWEX Eastern Market Indicator up by 31 cents, which closed the week at 1,754 cents.

The EMI has now risen for both sales of the 2019/20 season, a much-welcomed result after the prolonged run of losses to finish the 2018/19 season.

The mid-year break is the time many exporters take the opportunity to visit overseas clients.

The positive movement of the market is timely, as making sales in a depressed market can be very difficult.

As mentioned earlier, the market now heads into a three-week recess.

Sales will resume in Week 6, week beginning Monday the 5th of August.