Buyer Demand Drives Up Australian Wool Prices
November 3, 2017
More than 46,200 bales were offered to the trade in Week 18 of the Australian wool season. The increase in quantity – compared to recent sales – seemed to be insufficient to meet buyer demand.
All types and descriptions – across the entire merino spectrum – attracted excellent competition from all sectors of the trade, pushing prices strongly into positive territory. Finer microns – 16.5 to 21.0 – recorded general rises of between 30 and 80 Australian cents, with inferior types and better style wools (with unfavorable length and strength results) enjoying similar rises in price. The headline indicator hit a new high, surpassing the previous peak set in mid-August. The 45-cent jump this week pushed the benchmark barometer to 1623 Australian cents.
Recently, 19.5 micron has been the standout performer. Since its introduction in 2001, the Micron Price Guide is now sitting at a record high. The skirting market had a similar result to the fleece with sharp price rises on the back of strong widespread competition. All types and descriptions experienced general rises of between 50 and 100 Australian cents, wools finer than 18.0 micron and with less than 2.0 percent vegetable matter enjoyed the largest gains.
The crossbred market finally managed to reverse the downward trend it has recently suffered. A more stylish selection than in recent offerings attracted robust competition, and the entire crossbred range recorded general rises of 20 to 40 Australian cents with the better prepared lines attracting the most interest. The oddment sector came under intense pressure this week as buyers fought hard for a limited supply.