Wool Market Firms
February 17, 2017
National Council of Wool Selling Brokers of Australia Executive Director Chris Wilcox said the spectacular performance from superfine wool had seen a 535 cents/kg increase since the start of the season.
“As well, the 19 micron price guide lifted by 37c/kg last week and is now the highest level since 1990,” he said. “The Eastern Market Indicator lifted by 15c/kg to 1437c/kg. This is the highest level recorded since before the collapse of the Reserve Price Scheme in February 1991.”
This week, the EMI had a modest 3 cent rise to close at 1440 cents. In U.S. dollar terms, the EMI rose US16 cents to 1112 cents as the Australian to U.S. dollar exchange rate rose US0.94 center to US77.19 cents.
Fine Merino wool under 18 micron and crossbred fleece sold dearer as the auction market generally firmed this week.
Australian Wool Exchange showed the market was again led by the finer microns, with the 18 micron and finer wools the only Merino category to record significant rises – generally 10 to 30 cents dearer.
The crossbred sector continued its move back into positive territory this week, lifting 10-20 cents and with 28 micron wools most-affected. Buyers continue to favor the better prepared lines, with properly skirted wools enjoying the largest price gains.
The Australian Wool Innovation weekly market report stated prices resisted adverse currency fluctuations and initial reticence by overseas bidders to pay higher levels.
“The Australian dollar continues to surprise by forging upward against all major currencies, making life difficult for forward sellers to offer any substantial quantities overnight as by the morning, the rate could have moved considerably against them. Given the strong resistance, wool prices showed this past week we should fully expect the market to at least hold and maybe gain with the dwindling supplies of Merino types,” AWI said.