Lower wool supplies this week may help to hold prices at a high point

National indicator crests market wave

Sheep
The Eastern Market Indicator hit its highest point for the season last week at 1343 cents a kilogram - or US1040c/kg - and this week supplies will fall significantly.

The Eastern Market Indicator hit its highest point for the season last week at 1343 cents a kilogram - or US1040c/kg - and this week supplies will fall significantly.

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Can wool demand be sustained on the back of a big drop in supply this week.

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There was solid desire for various wool types last week and, once again, the fine categories attracted the most demand.

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) made strong gains.

It increased 17 cents a kilogram on Tuesday and another 6c/kg on Wednesday, to close the week at 1343c/kg - or US1040c/kg.

Last week's lower offering of 41,571 bales resulted in the pass in rate dropping to 7.5 per cent, which was well below the previous week's 11.7 per cent.

A highlight for national auction sellers was the EMI hitting its highest point so far this season, narrowly surpassing April's top of 1342c/kg.

The AuctionsPlus wool online offer board experienced a slight boost in sales last week.

There were 654 bales sold online, which was up by 41 bales from the previous week.

In strong demand was 16-micron wool, and 111 bales sold to a top of 2035c/kg (greasy), or 2764c/kg (clean).

The 21-micron segment was similarly sought and 129 bales sold to a top of 985c/kg (greasy), or 1269c/kg (clean).

The top priced lot online was for two bales of 15.4-micron Australian Superfine SUPAAA wool, which sold for 2130c/kg (greasy), or 2934c/kg (clean).

This line was branded "DH/Walcha" and had a staple length of 75 millimetres, vegetable matter of 0.7 per cent and was offered by Jemalong Wool.

This week, there is an estimated offering of 36,000 bales - as the western auction centre will not operate.

So, it will be interesting to see whether demand is sustained in light of this drop in volumes - and if it continues to bring the pass in rate down.

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