Broader microns hold firm

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Cally DupeThe West Australian
Merino wool.
Camera IconMerino wool. Credit: Countryman

Record prices for fine Merino wool have softened in recent weeks, reflecting supply and demand changes.

The season total peaked at $2.6 billion last week as trade reports indicated strong support for better-type wools. But the price of fine Merino continued its month-long contraction, with industry experts now forecasting it will fall further.

Elders National Wool Selling Centre emailed its clients this week and said encouraging signs from last week proved correct for 20-micron and broader wools.

The email also said prices for fine Merino wool were likely to fall before rising again somewhat.

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“Fine Merino premiums continued to contract this week as the fine Merino market moves into its quiet time of the year due to supply and demand changes,” the Elders centre said. “It seems likely these premiums will fall further before finding support at levels well above that of the depressed 2012-15 period.

“On the brighter side, broader Merino, carding and cross-bred prices are reasonably stable.”

Good gains were made across the Merino micron ranges last week, with the greatest rises in average Micron Price Guides from 19.5 microns and higher.

The AWEX EMI finished 6¢ higher in Sydney and Melbourne last week.

There was no sale in Fremantle.

A total of 24,018 bales were on offer nationally, compared to 28,459 bales last sale, and 9 per cent was passed in.

Australian Wool Industries Secretariat’s Wool Market Review said the market had displayed considerable resilience last week after the Australian dollar’s 2 per cent rise against its US counterpart.

“The EMI increased in both Australian and US currencies, particularly on Thursday,” it said.

“The season average EMI also moved past the 1400¢ mark to 1401¢, 147¢ above last year’s average.”

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