Fine wool gains help to lift market

Gains in fine wools helped to lift the wool market last week, as the Eastern Market Indicator gained 3c/kg to close at 1098c/kg clean.

Australian Wool Industries Secretariat executive director Peter Morgan said 17 to 18 micron wools lifted, while other micron ranges remained relatively unchanged.

"Of the 43,417 bales offered nationally, 10 per cent was passed in. The US exchange rate steadied, finishing 0.13c lower to close at 94.77c," he said.

AWEX said strength, mid-break and, to a lesser degree, length had all played important roles.

"Buyers actively sought out the better specifications regardless of fibre diameter," an AWEX spokesman said.

"In general, 40nkt types and those with mid-break less than 40nkt found good support, while part tender (less than 30nkt) and high mid-break types (greater than 80nkt) struggled for traction and lost ground."

Easily meeting all of the above criteria, a 166-bale consignment offered by Kojonup woolgrower Neil Kelly sold very well at the Western Wool Centre.

The WSK/Kojonup September/October-shorn clip sold to a top of 991c/kg for two lines, a 14-bale total, of 16-micron prematurely shorn wool off f one-year-old ewe hoggets.

"The yields were exceptional throughout the clip and strength was very good," Mr Kelly said.

All 16 lines of the WSK/Kojonup clip sold above evaluations.

"The fine wools sold slightly under last year, while the middle microns were higher," Mr Kelly said.

Mr Kelly and his wife Margie, and their son James and his wife Jeannie, run a 3100 Merino ewe flock, in addition to a 550 Poll Dorset-cross-Merino program.

"We run mostly a sheep breeding program, approximately 70 per cent the farm operation," he said.

"The Merinos are infused with Strath-Haddon bloodlines.

"We were pleased with how the ewes scanned this year, followed by a 91 per cent mid-June lambing."

Elders technical manager Danny Burkett said the Kelly family's clip was very consistent and preparation was very professional.

"It brought strong bidding competition," he said.

"Given the volatility on the currency front, it is surprising that wool is relatively steady.

"For the month of October, the Australian dollar traded in a range of .92c to .97c, or a movement of around 55c/kg."

Mr Burkett said demand from overseas markets was slowly improving, however, many in the trade remained cautious about their next move.

"This seen in forward markets with only a small volume being traded and buyers being reluctant to lift bid levels up to the price expectations of growers," he said.

"Bid prices, however, are above current auction levels and the tone remains on the positive."

Mr Burkett said lower cotton prices (around 10 per cent) may contribute to the uncertain outlook for wool.

This week's wool market has a volume of 42,595 bales, with estimates of 46,150 and 48,200 bales for the following weeks.

Thursday, November 7 *

AUCTIONS *

Australian Wool Exchange * CENTRE

Balesoffered

Balessold

Pass in rate

Bales w'drawn Northern 13,666 12,750 6.7% 3.6% Southern 20,628 18,692 9.4% 4.1% Western 9123 7645 16.2% 3.3% TOTAL 43,417 39,087 10% 3.8%

Western Market Indicator: *1124c/kg (+1)

Western region (Micron indicator quotes c/kg clean) 18 1268 +9 19.5 1222 +3 22 1173 -5 18.5 1252 +7 20 1212 +4 MC 782 -8 19 1232 -3 21 1192 -7

Eastern Market Indicator: *1098c/kg (+3)

Southern Market Indicator: *1080c/kg (+1)

Southern region (Micron indicator quotes c/kg clean) 16.5 1385 +2 19.5 1234 +3 25 872 - 17 1325 +6 20 1218 +1 26 772 -9 17.5 1287 +10 21 1218 +5 28 657 +1 18 1272 -4 22 1205 +3 30 627 +5 18.5 1261 +1 23 1204 0 32 555 - 19 1250 +1 24 - - MC 812 0