Market continues strong run

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Bob GarnantCountryman

Another strong wool market last week resulted in the AWEX Eastern Market Indicator (EMI) making its sixth consecutive weekly rise, jumping 42 cents and closing at 1032c/kg clean.

When converted to US dollars, the EMI is the highest on record, according to AWEX (see graph).

“Breaching 1045 cents will see the indicator in Australian dollars at its highest point since 2003, ” the AWEX market report stated.

AWEX said the finer microns continued to rally, making eight-year highs, while the medium to broader ranges also gained good support among buyers.

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Australian Wool Industries Secretariat consultant Peter Morgan said the fine wools led the market with rises of around 3.5–5 per cent.

“The difference between fine wool rises and broader micron categories was much less last week, ” he said.

Mr Morgan said other fibre commodities such as cotton had also continued an upward price movement, with the New York Board of Trade quoting a closing price of 140USc per pound after peaking at 157c earlier in the week.

“The closing price for cotton was 110c/lb four weeks ago and 98c eight weeks ago, ” he said.

The 52,290 wool bale offering last week was the largest since January, and this week is expected to reach 61,539 bales, the largest offering since January, 2009.

AWEX said increased prices were attracting larger volumes to auction.

Mr Morgan said the EMI was above 1000c last week in both Australian and US currencies.

“It has moved up by 18 per cent in $A and by 34 per cent in $US since the end of August, ” Mr Morgan said.

AWEX recorded another strong week in Fremantle with the Western Region Indicator closing 26 cents higher at 1031 cents, the highest level since January, 2008.

Finer types continued to dominate with a 15.8 micron line setting the season’s highest price. It was sold at the Western Wool Selling Centre at Bibra Lake through Primaries of WA for 1350c/kg greasy.

AWEX reported that Merino skirtings came under strong buying pressure at the centre, closing some 100 cents higher, particularly those at the finer edge, which have started to narrow the gap against fleece.

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