Gains and stability welcomed by wool sector
Australia’s wool market has steadied following a month-long “rollercoaster ride”, with Fremantle boasting strong gains on the back of strengthening buyer positivity.
The benchmark Eastern Market Indicator ended last week’s selling 7¢ up at 1542¢/kg clean in the wake of Australian-based buyers and Chinese buyers’ willingness to delve into their wallets alongside Europe and Indian customers.
At Bibra Lake’s Western Wool Centre, the Western Market Indicator rallied 18¢ to close at 1643¢/kg amid strong gains across the fine categories.
It comes after the EMI rose 170¢ to close at 1535¢/kg clean the week prior after record daily price hikes at Fremantle, Melbourne and Sydney auctions.
Australian Wool Exchange senior market analyst Lionel Plunkett said last week’s results demonstrated stability was returning to the wool sector.
“After the rollercoaster ride the Australian wool market has been on over the previous few weeks, (last) week’s auction provided what many industry members were hoping for, a solid week in which prices were consolidated,” he said.
“The national quantity rose to 30,135 bales, however compared to this time last year, the offering is down by 21.4 per cent, or 73,762 bales.
“The Melbourne market rose rapidly on the second selling day of the previous sale, so much so that the levels being achieved were well above those of the other centres.”
Although the EMI hiked, it lost US9¢ on the back of a weakening Australian dollar to close at US1047¢/kg clean.
Australian Wool Innovation trade consultant Scott Carmody said the sale results portrayed a strong, albeit flat wool market.
“Sentiment appears to shifting to the positive,” he said.
“Manufacturers appear to be showing (and exercising) faith at around the current market levels.
“Much of the Chinese interest though is for the fine medium Merino (18 to 22 micron) types.”
AWI forecasts show offerings for this week’s three sales were expected to range from 29,290 bales to 38,680 bales to be about 5.1 per cent less than the same period last year.
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