Australian Wool Market Rises for Fifth Consecutive Week
February 1, 2019
The Australian wool market continued its slow, upward trajectory in Week 31. Quantities reduced slightly compared to Week 30 and 38,830 bales were offered to the trade. When compared to the corresponding sale of 2018, the total amount of bales offered is down by 177,047 bales – a reduction of 15.7 percent.
Although the market recorded positive movement for the series, the merino sector performed with mixed results. Better style wools – with favorable additional measurement results – continued to attract excellent buyer support, resulting in very little change for these types.
Off-style types, wools carrying higher vegetable matter and those with high mid-breaks lacked the same support. The 20- to 40-cent reduction in these wools was the driving force behind reductions in the individual micron price guides. The AWEX Eastern Market Indicator added 7 cents for the series. The EMI has now recorded an increase in five consecutive weeks, for a total increase of 85 Australian cents.
Long, low vegetable matter types continue to outperform the rest of the skirting market and these wools recorded little change for the series. The increasing supply of higher vegetable matter types eased however, generally between 25 and 45 Australian cents.
The crossbreds were by far the best performing sector this week, and the increases in these types was a contributing factor for positive movement in the EMI. Wool 26 to 28 micron added 80 to 100 Australian cents while all other microns were generally 25 to 45 cents dearer. Although all types and descriptions recorded rises, it was the better prepared lines that attracted the strongest competition and posted the largest gains.