Price rise buoys WA woolgrowers

Zach RelphCountryman
Steve McGuire, of Kojonup, has welcomed last week’s wool market hike.
Camera IconSteve McGuire, of Kojonup, has welcomed last week’s wool market hike. Credit: Daniel Wilkins

The State’s woolgrowers are relishing a rise in the greasy commodity’s value, with the market last week defying a month of falls.

Last Thursday, the Eastern Market Indicator closed 170¢ up at 1535¢/kg clean in the wake of record daily price hikes at Fremantle, Melbourne and Sydney auctions.

Wool was trading as low as 1365¢/kg clean earlier this month.

The Western Market Indicator jumped 198¢ to close at 1581¢/kg last Wednesday, while Melbourne and Sydney also notched record hikes on the opening selling day last week to increase 132¢ and 126¢ respectively.

Kojonup woolgrower Steve McGuire lauded the wool market’s returning buyer confidence, which had endured hits amid the US-China trade war and Brexit discussions.

Mr McGuire said the price rise was timely after shearing a number of possibly live export-bound Merino wethers earlier this month to produce 74 bales.

“My wool is getting tested this week and will be going to the market soon, so I’m pleased to see the market go up,” he said.

“The fundamentals of wool are still pretty strong, but outside influences and external factors are what has hit the market.”

The WA wool value hike last week came after only one selling day was held at the Western Wool Centre the previous week.

Amid market uncertainty earlier this month, 3036 bales were sent to auction at the Bibra Lake facility, after 29 per cent of bales were withdrawn ahead of the sale.

It marked WA’s smallest sale since Australian Wool Exchange records started in 1995.

Wool analysts are tipping last week’s price increase as a sign of market recovery.

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