Australian Market Sees Upswing in Week 48

After three weeks of successive losses, the Australian wool market rebounded in Week 48. The turnaround was fueled by much stronger buyer sentiment. The increase in confidence resulted in an aggressive approach as buyers fought hard to secure meaningful quantity of a relatively small selection. Only 28,273 bales were available to the trade in this sale.

When compared to the corresponding sale of the previous season, the national offering has fallen by 12.1 percent - or 215,689 bales - with only four sales remaining until the end of the season. The small offering and strong demand pushed prices higher. In general terms, the increases were between 40 and 80 cents. After losing 159 cents during the previous two weeks, the AWEX Eastern Market Indicator added 54 cents for the series to close at 1,887 Australian cents. After recording the highest national passed in rate of the previous two seasons at 28.2 percent in Week 47, the price rises helped to reduce the passed in rate to 8.5 percent for this series.

The skirtings followed the lead of the fleece recording increases, generally between 40 and 60 cents. After the large losses experienced at the previous sale, the crossbred sector also managed to bounce back. The entire crossbred range generally rose by 40 to 60 cents. Main buyer focus was on the better prepared lines and these wools enjoyed the largest increases. The oddments also recorded strong positive movement. Locks, in particular, came under intense pressure as multiple exporters competed on a limited quantity and pushed prices up by 30 to 40 cents.

The Fremantle region has a one-week recess in Week 49. With only Sydney and Melbourne in operation, the national quantity reduces to 23,619 bales. If the price rises do not bring more sellers to the market, this will be the smallest national offering in more than two years.

Source: AWEX