Australia Wool Market Continues Upward Trend
February 15, 2019
The Australian wool market continued to track upward in Week 33. Quantities were higher than first rostered, resulting in a slightly increased offering on the previous sale, as nationally 40,165 bales were available to the trade.
Compared to the corresponding sale of the previous season, there have been 179,089 fewer bales offered – a reduction of 14.8 percent. In the Northern region, Thursday’s sale was the smallest merino fleece offering in 12 months. The weekly total was the smallest sale in almost five years. As in recent weeks, the rise of the market was gradual but sustained. Prices continually increased as the series progressed. By the end of the sale, the prices being achieved were generally 10 to 20 Australian cents above those seen in the previous week.
The only exception to this was a larger than normal superfine offering in the Southern region, which saw 18.0 micron and finer fall by 15 to 25 cents. The AWEX Eastern market indicator added 24 cents to close the week at 1,968 Australian cents. The EMI has now increased for seven consecutive sales, adding 119 cents since Week 24.
The crossbreds attracted extremely strong support, helping to push some prices to record levels and contributing to the healthy rise of the EMI. The Micron Price Guides in Sydney and Melbourne centers posted their highest recorded levels of 1,083 and 1,103 Australian cents, respectively.
In the Southern region, the MPG for 30 micron is also now at a record. It is the first time since the AWC/AWEX series commenced in 1979, that it has been more than 900 cents (previous high was in 2015, just shy of 900).