Prices Rebound for Fine To Medium (17-25) Micron Wools
June 9, 2017
Week 50 in the Australian wool market saw just more than 24,000 bales on offer with an unusual selling pattern of only Sydney and Melbourne holding sales. This was due to the Fremantle region having a one-week recess.
The first selling day saw the market suffer further price reductions, resulting in the benchmark Eastern Market Indicator falling a further 5 cents. This was mainly accountable to the Northern Region, which lost 20 to 30 cents in the 19.0 micron and finer sector, bringing prices closer in line with the Southern Region. Although the EMI recorded a small fall, due to the rise in the Australian dollar the EMI actually recorded an impressive 19 cent rise in U.S. dollar terms.
The second day of selling saw a complete turnaround, the market started to climb and buyers scrambled to try and find value in a rising market. All types and descriptions experienced rises, generally between 15 and 30 cents with better style and spec wools enjoying the largest gains. The EMI posted an 11 cent lift to close the week at 1478 cents, an overall increase of 6 cents for the week. Increases ranging from 12 to 20 cents (in U.S. terms) were seen from 19.5 to 22 microns.
The skirting market followed the lead of the fleece market, prices dropped on the first day, only to have those losses generally recouped on the second. Main buyer interest continues in wools containing less than 5 percent vegetable matter or lots possessing excellent test results. The crossbred market was a different story in each center, general increases of 5 to 10 cents in the North compared to general decreases of 5 to 10 cents in the South.