Australian Wool Market On Upward Trend Again
December 1, 2017
Last week the Australian Wool Market suffered a slight correction after the significant rises experienced in the proceeding weeks. Despite a reasonably large offering of more than 49,000 bales, the market managed to bounce back into positive territory once again this week.
With only two sales to go before the annual three-week Christmas recess, buyers were keen to secure market share whilst the opportunity presented itself. As a result, all types and descriptions across the entire merino spectrum came under intense buyer scrutiny. The increase in prices was gradual rather than extreme, as buyers had to slowly increase their levels to secure market share. By the time the hammer fell, rises had generally increased by 15 to 30 cents across the board. The Benchmark Eastern Market Indicator recorded a 7-cent increase to close at 1676 Australian cents. Notably, this is 298 cents above the level of the corresponding sale of last season – an increase of more than 21 percent.
The skirting market experienced similar movement to the fleece with gradual increases rather than dramatic rises. Main buyer interest was focused on wools carrying less than 2 percent vegetable matter or those exhibiting excellent additional measurement results. The crossbred market defied the other sectors and continued its downward trend. Prices were generally discounted by 10 to 25 cents. Buyers were very selective with their purchases. Any lots that were poorly prepared were often overlooked and, as a result, suffered the greatest reduction in price. The oddment market has continued its strong climb upward. The increase in levels was also gradual, resulting in the three carding indicators recording an average increase of 3 cents.