Biggest wool offering in years as market reopens

Consumer demand keeping wool prices on a high


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A rising dollar during the wool selling recess is not expected to alter prices when auctions resume on Tuesday.

A rising dollar during the wool selling recess is not expected to alter prices when auctions resume on Tuesday.

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Huge bale offering has wool market excited

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The wool market resumes on Tuesday after a three week recess with the market expected to defy the rise in the currency, and with one of the biggest wool offerings for a few years.

There will be 54,331 bales on offer in Sydney and Melbourne this week – not a surprise offering after a three week hiatus – but still a great vote of confidence in the market. It is believed to be one of the biggest offerings in two years.

Industry participants believe the rising dollar during the recess will have little or no effect on the Eastern Market Indicator’s  strong mark that it left off at on July 13, when it hit 1522c/kg.

Gerard Buchanan, Schute Bell’s Yennora Wool Centre Sydney manager, said some strong futures trading over the recess  showed the market was ready to kick off on a positive note.

He expected little or no effect on the EMI from the rise in the dollar, which was a vote of confidence in the market.

“Honestly you might think it would fall 40-50c based just on the moves in the dollar but we don’t think that will happen,” he said.

He  expected  some rises in the price of highly sought after better spec fleeces, while there might be some retraction in VM low spec offerings.

“I  expect a reasonably strong showing and any falls in some areas will be cancelled by rises in others.”

McDonald Woolbrokers, Dubbo, reported at the end of the last wool auction period that : “Buyers were keen to purchase wool but still very choosy with what they bought and price sensitive. New demand was mainly for merino fleece less than 19 micron, skirtings and crossbreds as some broader fleece types and cardings took a hit from a lack of demand”.

Principal  Don McDonald reported there had been strong futures sales during the recess and he expected  the market to be resilient on re-opening.

He said the demand was coming from “the consumer ” and woollen apparel was in strong vogue. He said it was probably one of the biggest wool market offerings in the last two years.

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