Wool starts mid-year recess on a high

The Eastern Market Indicator climbed to 1754c/kg at the close of auctions on Tursday, while the Northern Market Indicator representing sales in Sydney surged another 42c/kg to hit 1780c/kg.

The EMI has now risen for both sales of the 2019/20 season, a much-welcomed result after the prolonged run of losses to finish the 2018/19 season.

AWEX market information manager Lionel Plunkett said this week's sales represent the final meaningful opportunity for buyers and exporters to secure wool until August.

"It is also the final chance for exporters to finish any orders needing to be shipped during the coming weeks," Mr Plunkett said.

"These factors have helped to keep the market on an upward path, following on from the price increases experienced during the previous series."

Due to seasonal conditions, he said the size of the Australian wool clip was expected to decline again this season.

"This sale there was 34,080 bales rostered for sale, this now means that when compared to the corresponding sale of the previous season, the amount of wool offered at auction has fallen by 19,350 bales, a reduction of 22.9 per cent," Mr Plunkett said.

Positive buyer sentiment was again evident from the start of the series, although main buyer focus was on the better style lines and wools with favourable additional measurements, all types and descriptions recorded increases for the week.

Some of the fine-micron wools in Sydney were on average more than 40c/kg dearer this week reflecting the buyer sentiment to fill orders.

The 16.5-micron wools averaged 2185c/kg, 17-microns averaged 2175c/kg, while 18.8-micron wool averaged 2089c/kg.

The 20-micron lots were 24c/kg dearer and averaged 2033c/kg.

Mr Plunkett said the mid-year break was the time many exporters took the opportunity to visit overseas clients.

"The positive movement of the market is timely, as making sales in a depressed market can be very difficult," he said.

Sales will resume in Week 6, week beginning Monday, August 5.