Australian Market Steady Once Again
February 8, 2019
The Australian wool market continued its slow, gradual climb in Week 32. The national offering increased slightly as 39,894 bales were available to the trade. Although quantities increased on the previous week, the current AWEX Four Week Forecast is showing a continual reduction in quantity in the coming month.
This forecast has led many exporters to attempt to secure meaningful quantity, while it is still available. Prices remained relatively unchanged on the first day of selling and this was reflected in the AWEX Eastern Market Indicator which recorded no change on the first day. Buyers became more aggressive in their approach on the second day. The result was price increases across the board. The prices being realized were generally 10 to 20 cents above those achieved in the previous week.
The EMI rose by 10 cents for the day, thus gaining 10 cents for the series, to close at 1,944 Australian cents. The EMI has now risen for six consecutive weeks, adding 95 cents since Week 24. Worth mentioning, Week 32 hosted the first designated superfine sale in the Northern region. The specialty selection attracted strong support, pushing the Micron Price Guides for wool 18.0 micron and finer up by 40 to 45 Australian cents. Due to currency movements, when viewed in U.S. dollar terms, the EMI lost 25 cents for the series.
The crossbred sector has added further gains to the large increases achieved at the previous sale. General increases of between 20 and 40 Australian cents were experienced in the 25.0 to 30.0 micron range. A limited selection of 32.0 micron were generally unchanged. The oddments market finished marginally easier, generally 5 to 10 cents on most types.
As mentioned earlier the national offering reduces again for next week’s sale. Currently, there are 38,205 bales rostered for sale in Sydney, Melbourne and Fremantle.