Australian Market Continues Record Rise
May 25, 2018
The unprecedented rise of the Australian Wool Market continued in Week 47. As the season progresses, the national offering continues to reduce – a total of 30,053 bales were offered to the trade. Despite the offering again consisting of many lower-yielding, lesser-style wools, the market continued its bullish trend.
Buyers maintained their aggressive approach, perhaps due to concern about upcoming supply. Merino wools received strong support with all types and descriptions posting solid gains. Seventeen micron all the way through to 22.0 micron, generally sold at levels 40 to 80 Australian cents above those achieved at the previous sale. Interestingly, due to the coarser microns posting the largest increases in the previous three sales, the average price difference between a 19.5 and 22.0 micron is now only 50 cents.
The Benchmark Eastern Market Indicator was already sitting at an all-time high of 1,943 Australian cents after considerable rises the previous few sales. This week, the EMI added a further 40 cents, pushing it to a new record of 1,983 Australian cents. The EMI has now added an impressive 488 cents in the previous 12 months – an increase of more than 32 percent.
During the previous 24 months, the EMI has risen by 53 percent (or 691 Australian cents). Another point worth noting, the Individual Micron Price Guides for 17.5 all the way through to 22.0 micron are all sitting at previously unseen levels.
Skirtings followed a similar path to the fleece, posting healthy gains of 40 to 60 Australian cents. Wools carrying less than 3.0 percent vegetable matter and those possessing favorable additional measurement results enjoyed the largest gains. A limited selection of oddments recorded general increases of 15 to 40 cents, pushing the three carding indicators up by an average of 30 cents.