Wool waives 7c/kg

The Eastern Market Indicator closed at 1044c/kg.

Shute Bell Badgery Lumby Sydney manager Gerard Buchanan said the wool prices went up in the past few weeks on the back of the Australian dollar dropping and a lot of new orders were put in place.

“In the months leading up to Christmas I think we will see the better quality wools well supported. Lower quality wools might be back a little, but I can’t see any dramatic change in the market either dearer nor cheaper,” he said.

Mr Buchanan said there was every chance the market could jump to the same price as two weeks ago.

“We’ve seen the market fluctuate all year,” he said.

“It will be a matter of more orders coming in and the market will kick again.”

AWEX senior market analyst Lionel Plunkett said the 48,373 bales offered nationally last week was the largest offering in eight months.

“The weak finish recorded in Fremantle during the previous auction gave a negative lead into last week’s sale,” Mr Plunkett said.

“The market gave up ground from the outset, generally falling by 10c/kg on Wednesday for most descriptions.”

Mr Plunkett said most affected were the lower spec types, like part tender and high mid-break, as well as those in the 19- to 23-micron range.

“The finer types were assisted by good support for the better types, especially in Sydney which was a designated superfine sale,” he said.

As a result the Northern Indicator only fell 3c/kg last week to finish on 1069c/kg.

At the Sydney sales last week, superfine prices shifted with 16.5 micron finishing 15c/kg dearer than the previous week, to close at 1330c/kg.

The 17-micron wool also lifted by 19c/kg closing at 1305/kg.

“Going against the trend was a lift in prices in the superfine range for spinners and selected best style types.”

Crossbred prices were slightly down at the close of sale last week the biggest drop being 10c/kg for the 30-micron indicator closing at 653c/kg in the Sydney auction rooms.

Elders wool sales manager Bruce McLeish said like the Merino sector crossbred wools were segregating at the moment.

“As the movement in the northern market indicators illustrate even when the overall market tone is negative, good fine wools can still increase in price as buyers chase the better tested lots,” Mr McLeish said.

“At some point in the next couple of weeks enough orders for medium Merino will be booked further downstream to create a flow-on effect in the auction room.

“Certainly the analogy of sheep standing before an open gate is an apt one at present, where movement at the front of the mob will result in a rush.”

Mr McLeish said most of Australia’s crossbred wools in the 28- to 32-micron range have good support at current levels, however, the coarser carpet types above 34-micron have encountered significant price resistance.

SHEARING for weight is the objective for Craig and Helen Batterham, on their 11,000 hectare property “Everleigh”, Timor.

Mr Batterham (pictured) runs 600 Merinos, but in years when it’s not so dry he normally runs 2500 ewes all of which are Pemcore blood.

“At the moment the place is okay for sheep and we normally run cattle, but we don’t have enough water.”

Shearing occurs every October when wool is sold through Newcastle and Tamworth.

“For medium wool the market’s pretty good but for fine it’s ordinary,” Mr Batterham said.

“We aim to produce 20- to 21-micron wool.”

“Producing good clean wool that’s heavy cutting is what we are going for.

“This year’s wool is currently in for testing – hopefully the Australian dollar going down might help it a bit.”

Mr Batterham said the Merinos are cutting more wool this year due to him reducing his stocking rates.

“Sheep have averaged 6.5 kilograms of wool each and we are pretty happy with that,” he said.

“The wool is nice and clean and because of the drought we don’t have any grass seed contamination,” he said.

“That’s one good positive to come out of a dry period.

“I like Merinos as they’re a good meat and wool sheep and the bigger framed western ewes produce a good amount of wool and are good mothers,” he said.