Finer types underpin market as industry seeks Dollar favour and more demand

Hopes pegged on currency changes

Sheep
Finer wools are in favor and two bales of 14.9-micron Merino AAASUP fleece returned 2300c/kg (greasy) on the AuctionsPlus online offer board last week.

Finer wools are in favor and two bales of 14.9-micron Merino AAASUP fleece returned 2300c/kg (greasy) on the AuctionsPlus online offer board last week.

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Finer wools are holding-up the wool market and reached 2300c/kg online last week.

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Physical wool auctions returned last week after the Easter recess and a big offering of 46,256 bales went under the hammer.

This volume was met with softer prices across the week, as buyers continued to exhibit nervousness.

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) lost seven cents a kilogram on the first selling day - on Tuesday - and fell another 8c/kg on Wednesday to close the week at 1291c/kg - or US996c/kg.

Diminished buyer confidence was demonstrated during the market's return from Easter and the pass in rate was pushed up to 14.3 per cent nationally.

There was a strengthening in values at the finer end of the market and these wools attracted solid support throughout the week, underpinning the value of the AWEX EMI.

This week's reduced offering of an estimated 44,854 bales will likely see the wool market strengthen as summer fleeces clear.

The AuctionsPlus online offer board experienced increased activity during last week and 415 bales sold for the period.

That included 114 bales of 16-micron wool that reached a top price of 1800c/kg (greasy), or 2403c/kg (clean).

The 17-micron wools were the biggest selling range last week on the offer board and 203 bales of this category were cleared to a top price of 1590c/kg (greasy), or 2157c/kg (clean).

The overall top priced lot online was for two bales of 14.9-micron Merino AAASUP fleece, which fetched 2300c/kg (greasy), or 3034c/kg (clean).

This had a vegetable matter of 0.5 per cent, was 81 millimetres in staple length and was offered by Jemalong Wool - with "DH/WALCHA" branding.

Currency changes are controlling market confidence at present and, given the high withdrawals of wool from sales last week, it appears producers are hoping the Australian Dollar returns to May levels soon.

It is hoped this will entice overseas buyers.

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