Prices across the board advanced significantly as Australian wool auction sales resumed this week, following a three week break in sales for Christmas. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) gained 48ac clean/kg for the week to close at 1910ac, a figure which is 2.58 per cent higher than the pre-Christmas close.
“A wildly erratic but cheapening Australian Dollar (AUD) against all major trading currencies through the course of the recess had buyers eager to accumulate quantity from the outset of selling. Widespread and similar opinions of a dearer wool market were commonplace pre-sale as buyers returned to the show floors. By weeks end, this was exactly what had eventuated,” Australian Wool Innovation (AWI) said in its ‘Wool Market’ report for the sale week 28 of the current season.
When expressed in US Dollars (USD), the EMI gained a neat 2 per cent to move upward 27usc clean/kg to close the week out at 1372usc. However, when the EMI is looked at in Euro and the Chinese Yuan, gains of just 0.3 per cent and 0.8 per cent respectively showed that not all users had to extend themselves too far from the pre-Christmas price levels to participate in the purchasing activity.
The fine and medium Merino fleece and skirtings were the prime movers during the week as general levels increased by 50 to 80ac per kg, with the broader edge being the most sought. Within this generalisation though, some of the better specification types were much dearer than these quoted ranges, and conversely, the lower specification wools were not as dear, the AWI report said.
The super fine types were not neglected and gains of between 25 and 40ac were recorded. Of most interest was any sale lots meeting Italian (European) and Indian order parameters, which has been a season long trend as both of those destinations continue to bite into the market share of China whom on latest export figures have fallen from 75 per cent last season to 71 per cent this year.
Significant also is the fact that just 735,000 bales have been sold through auction to the trade this year in comparison to the 935,000 bales sold at the same time of last season. This represents 200,000 bales or 21.3 per cent less wool to the global wool industry from Australia in just over 6 months.
At the wool auction next week, there would be a very large offering of almost 54,000 bales, which would immediately put to test the extremely positive commencement to the new year, AWI said.