Wool prices on rebound

The EMI lost only 10 cents for the series, closing at 1365 cents a kilogram.
The EMI lost only 10 cents for the series, closing at 1365 cents a kilogram.

Season 19 - Week 10

Source: Australian Wool Exchange (AWEX)

The Australian wool market has shown signs of recovery after a month of severe losses.

Exporters reported that they were making sales close to the current market, finally giving the market a solid level.

Sellers have been reluctant to put their wool on the market, pushing the national quantity down to 21,694 bales.

This reluctance was highlighted in the Fremantle region, where 29 per cent of the offering was withdrawn prior to sale, reducing the offering to 3036 bales.

This made it the smallest Fremantle sale since AWEX records began (1995).

The first day of selling saw further losses, on the back of these falls the AWEX Eastern Market Indicator (EMI) fell by 32 cents a kilogram.

However, in the Fremantle region during the last hour of selling, there was a noticeable change in the room, as fierce competition started to push prices back in a positive direction.

This positive buyer sentiment carried on into the eastern centres on the second selling day, so much so that prices finally started to increase.

The individual Micron Price Guides (MPGs) generally rose by 30-40 cents a kilogram, pushing the EMI up by 22 cents a kilogram.

This meant the EMI lost only 10 cents for the series, closing at 1365 cents a kilogram.

Worth noting, when viewed in US dollar terms, the EMI recorded an increase of US9c for the week.

The carding market showed growth for the series, a limited supply came under strong buyer demand, pushing prices up by 10-30 cents a kilogram, this was reflected in the three carding indicators which rose by an average of 15 cents a kilogram.

The crossbreds generally recorded positive movement, 26.0 to 28.0-micron rose by 5-10 cents a kilogram.

Next week's national offering is still relatively small, as sellers are still waiting for the market to recover.

Currently, there is 27,923 bales rostered for sale in Sydney, Melbourne and Fremantle.

For more information, visit www.awex.com.au

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