Tight supplies prompt slight spike in wool prices

Fine way for wool prices as supply net tightens

News
Aa

Biggest gains at the finer end as buyer competition for low supplies helps push-up wool prices.

Aa
Finer types led a small rise in wool prices last week, with 16.5 to 19.5-micron categories gaining more than 20 cents a kilogram in the north and 19.5-micron fleece rising by 29c/kg.

Finer types led a small rise in wool prices last week, with 16.5 to 19.5-micron categories gaining more than 20 cents a kilogram in the north and 19.5-micron fleece rising by 29c/kg.

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) last week made up a portion of the ground it lost the week before.

It finshed at the close of Wednesday's auctions at 1,170 cents a kilogram, which was up 15c/kg. In US Dollar terms, this equates to 770c/kg.

Buyer competition for the relatively small national offering of 18,828 bales helped drive the price upwards.

Passed in rates also fell by 4.7 per cent to finish at 7.9 per cent.

This week's national auction offering is expected to drop again, with only 17,136 bales on offer so far.

The ongoing drop in supply will likely bring a bit of stability to the EMI in the short term.

Last week, 16.5 to 19.5-micron wool prices all increased by more than 20c/kg in the north, with 19.5-micron fleece rising by 29c/kg.

Thursday was Week 48 of the online wool auctions held on AuctionsPlus.

Nutrien Ag solutions (Southern) offered 83 bales over 18 lots.

Clearance improved dramatically this week at 100 per cent.

The usual buyers competed throughout the auction, creating healthy competition for the sale.

The top priced lot online this week was a line of 17.4-micron AAAA Merino fleece with a very low (0.1 per cent) vegetable matter and branded CLEBYARRA, selling for 1105c/kg greasy. This vendor sold 12 other lots in the auction.

In the past seven days to early this week, 348 bales were sold on the AuctionsPlus wool offer board.

This is up 301 bales from the previous week.

The increased online interaction falls in line with stronger clearances at the live auctions, and may also be a result of lower supply.

Online sales included 15-micron Merino fleece wool that sold from 1220 to 1465c/kg (greasy) or 2044 to 2170c/kg (clean).

A top of 1045c/kg (greasy) or 1422c/kg (clean) was reached for 18-micron Merino fleece, and 19-micron Merino fleece sold to a top of 955c/kg (greasy) or 1285c/kg (clean).

The top price online was for a line of 15.3-micron Merino fleece wool, which was offered by Elders Melbourne, branded LANGOWAN and sold for 1465c/kg (greasy) or 2170c/kg (clean).

This week's live auctions will once again be smaller and we will see if a lack of supply can outweigh a bleak global economic outlook in order to keep prices steady.

Aa

From the front page

Sponsored by