Upward swing for wool prices

Season 19 - Week 15

The Australian wool market has continued to perform erratically this week, this time moving in a positive direction.

Many veteran wool traders have commented that the current market conditions are unprecedented, with the large market fluctuations making trading a very difficult exercise, even for the most seasoned of operators.

Highlighting this market volatility, has been the movement in the AWEX Eastern Market Indicator (EMI) over the previous 10 weeks.

When viewed in both positive and negative directions, the EMI has moved a total of 763 cents a kilogram over this period.

The national offering reduced to 28,149 bales.

Compared to the corresponding sale of the previous season, the total number of bales offered has fallen by 85,494 bales, a reduction of 19.1 per cent.

As the sales commenced in the eastern centres, it was immediately apparent that this week's market direction would be upward.

The Eastern Market Indicator closed the week at 1543 cents a kilogram.

The Eastern Market Indicator closed the week at 1543 cents a kilogram.

Main buyer focus was on wool 18.5-micron and coarser and these wools enjoyed the largest price increases.

The individual Micron Price Guides (MPGs) in Sydney and Melbourne for 18.5-micron and coarser rose by 28 to 47 cents a kilogram on the first selling day.

On the back of these rises the EMI rose by 18 cents to 1529 cents a kilogram.

As the news of the rises made its way west, many sellers decided against offering their wool, resulting in 34 per cent of the total offering and over 37 per cent of the fleece being withdrawn prior to sale.

This significant reduction in the available quantity, put extra pressure on what remained, pushing the MPGs in Fremantle up by 39 to 55 cents a kilogram.

The second selling day the market consolidated, adding small increases to those of the previous day.

The MPGs across all three centres rose by 4 to 34 cents a kilogram.

The EMI added another 14 cents, closing the week at 1543 cents a kilogram.

Next week's national offering increases.

Currently, there is 40,056 bales rostered for sale.

For more information, visit eldersrural.com.au/wool/