Sparks of interest from local and overseas buyers underpins small price rise

Wool market enjoys small kick

Sheep
Demand from wool buyers strengthened marginally in the past week, helping to push fine Merino wool prices up by 10-20 cents a kilogram.

Demand from wool buyers strengthened marginally in the past week, helping to push fine Merino wool prices up by 10-20 cents a kilogram.

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Physical wool auctions opened stronger last week after the record falls experienced in the previous week and price increases were recorded across most categor...

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Physical wool auctions opened stronger last week after the record falls experienced in the previous week and price increases were recorded across most categories.

Clearance rates were strong, reaching 92 per cent of the 30,272 bales offered.

The Australian Wool Exchange Eastern Market Indicator (EMI) fell 4 cents a kilogram on Tuesday and then had a small recovery on Wednesday, rising by 2c/kg to finish at 1004c/kg.

In US dollar terms, the EMI was down to 715c/kg.

Most of the wool put under the hammer last week actually increased in value, but a large drop in prices in the cardings and oddments sectors resulted in the fall of the EMI.

Overseas interest from China and Europe - coupled with local exporters - resulted in prices trending up, with Merino fleece wool selling 10-20c/kg above the previous week's level and crossbred wool was 5c/kg dearer.

The past week has seen the AuctionsPlus online offer board being used fairly consistently, with a total of 268 bales sold.

Last week, 16 and 17-micron fleeces sold up to 1000c/kg (greasy) and 955c/kg (greasy), or 1637c/kg (clean) and 1380c/kg (clean).

In the 18 and 19-micron fleece category, wool sold up to 845c/kg (greasy) and 825c/kg (greasy), or 1271c/kg (clean) and 1112c/kg (clean).

While 20 and 21-micron wool sold to 737c/kg (greasy) and 700c/kg (greasy), or 1083c/kg (clean) and 1080c/kg (clean).

The top price online was for a lot of 15-micron Merino fleece that returned 1228c/kg (greasy), or 1878c/kg (clean). This line had 2 per cent vegetable matter, was 89 millimetres in length and was offered under the brand Brooksdale/F.

Looking ahead, there are an estimated 35,000 bales to be offered this week nationally.

The wool market is in such a low position that overseas companies are weighing-up whether to buy wool at these levels, or not - given the global uncertainty.

Reports from the physical auctions suggest that room two wools will see some demand, but fleece wools may continue to have a tougher run.

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