Finer microns positive sign

Bob GarnantCountryman

The AWEX Eastern Market Indicator (EMI) eased back six cents last week, closing at 940c/kg clean.

AWEX said the Merino types were lower across most sectors with only finer microns giving some positive leads.

"The more stylish 40nkt types in the 16 to 17 micron range found good support," AWEX said.

Australian Wool Industries Secretariat representative Peter Morgan said the EMI was down by 0.6 per cent in Australian currency and by 0.4 per cent in US currency.

"The market had an easing in the Merino fleece wools, with stronger demand for the non-fleece wools," Dr Morgan said.

"Crossbreds also did better than Merino fleece wools."

He said of the 35,633 bales on offer nationally, 33,002 cleared to the trade.

Landmark said that most categories offered in Fremantle were quoted down 5 to 10c/kg with the exception of better styles in the 18.5 to 19 micron range.

The Western Market Indicator closed at 939c/kg clean.

At the current level of wool prices, Landmark said there was a chance of market consolidation, otherwise it was reasonable to expect a further 50c/kg downside before another support loomed.

Elders national wool manager Andrew Dennis said given the lack of confidence in China at present, withdrawing wool from sale and holding until early next year was a 50:50 gamble at best.

"Prices have not fallen far enough in the eyes of the Chinese trader to spark competitive value against other fibres," Mr Dennis said.

"In the absence of further stimulus, the market will continue to drift along in its current range, plus or minus 20c."

He said that while China's growth continued to slow, the key trigger for textiles remained with exports to Europe and the US.

"An extreme bout of cold weather in the northern hemisphere would be ideal," Mr Dennis said.

Wool sales in Sydney, Melbourne and Fremantle will offer 47,060 bales this week with the following two combined national sales expected to reach 40,913 and 48,150 bales respectively.

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