Australian Wool Market Up After Holiday

Quantities in the Australian wool market increased considerably thanks to a week-long break in sales last week following the Easter holiday. The larger quantity did little to soften buyer demand, perhaps because brokers are reporting a sharp decline in shearing activity as many farmers are starting their annual cropping programs.

This predicted drop in fresh wool being available has been reflected in the AWEX Four-Week Forecast issued this week, which shows that Weeks 45 and 46 will have less than 35,000 bales and Week 47 will include less than 31,000 bales nationally.

Main buyer interest in Week 44 was in the best/good style wools and spirited bidding on these types helped to elevate prices by 15 to 30 cents. These increases pushed up the AWEX Eastern Market Indicator by 17 cents for the series, closing the week at 1,960 Australian cents.

The inferior style wools were not as well supported and lost further ground. The EMI has now risen for two sales in a row after its previous run of losses. Worth noting, due to currency movement, when viewed in USD terms, the EMI fell by 21 U.S. cents.

The crossbreds again recorded healthy gains. Of note was the 40- to 60-cent rise of 28.0 micron, pushing the individual Micron Price Guide for 28.0 micron further into record territory in both Sydney and Melbourne.

After tracking downward for the previous six weeks, the merino cardings recorded positive movement. Prices generally increased by 10 to 30 cents, pushing up the three carding indicators by an average of 15 cents.

Source: AWEX