THE wool market was able to drag back some of the losses of recent sales to end the year on a positive note.
Last Thursday the Eastern Market Indicator (EMI) settle on 1355 cents a kilogram which was 6c/kg higher than the week before.
The Northern Market Indicator, which represents the Sydney sales, was even stronger and finished the year on 1412c/kg. This was a lift of 9c/kg in one week.
Australian Wool Exchange (AWEX) market information manager Lionel Plunkett said more than 55,000 bales were offered last week, the largest national total since January.
At the same time, he said the strength of the EMI was evident by the fact it finished the 2016 calendar year 90c/kg higher (+7.1pc year-on-year) at 1355c/kg, the highest calendar-year closing figure on record.
“Turnover for 2016 was just over $2.5 billion, the largest amount since 2002 ($2.9 billion during that year when volume was 62pc higher),” he said.
“Average dollars per bale in 2016 (excluding the NZ wool) was $1478, the highest on the AWEX database (since 1997).”
Mr Plunkett said unlike in recent weeks where the market had been subject to large price increases or corrections, last week there was a gradual increase in prices across all centres on all selling days.
“After steady price rises throughout the sale, all Merino sectors generally finished the week 10c/kg to 20c/kg above levels recorded in the previous sale,” he said.
At the other end of the market, crossbreds recorded the largest offering of wool in two years.
Mr Plunkett said this was 34pc larger than last week and as result prices drifted lower.
Poorly prepared lots in particular were neglected, then increasingly discounted as the sale progressed,” he said.
Shearing contractor and wool grower Brian Hunt, "Coogah West", Murrurundi, was thrilled the market closed on a positive note last week.
“We only just finished shearing on my own property, so it’s good to know the market was able to hold up,” Mr Hunt said.
“There was a big offering and it shows the support from buyers that the market was able to rise against the large volumes.”
Mr Hunt said the recently shorn wool would be sold into the February auction which traditionally was held in Newcastle before that selling centre was closed.
“Now that the Newcastle sales are not on, we still sell at the same time, but into the Sydney auction instead,” he said.
He said the wool cut this year was much better than last year and hoped the price returns would also reflect that.
Prospects for 2017 were quite variable for different categories of wool according to Elders Wool representative Bruce McLeish.
Mr McLeish said supply would be favourable for fine Merino wool and a headwind for broad Merino categories.
“Crossbreds will develop a new, lower trading range down from the excesses of 2015 after supply passes through its seasonal peak,” he said.
