Wool prices mixed heading into recess

The first wool sale of the 2021-22 season and has ended with a bumper offering and mixed results, with the Eastern Market Indicator dropping 3¢ to close at 1420¢ today.

There were 51,260 bales offered this week, down from prior estimates of 55,000 bales, with buyers keen to well in the new financial year.

It was the biggest number of bales offered this calendar year and up 66.3 per cent on the previous season, where only 30,821 bales were offered.

A line of 12.8 micron Merino fleece wool netted the highest price at auction in more than three years, selling for 8100¢/kg greasy.

The market opened softly on Tuesday, with the large offering attracting minimal price movements across the board.

National Council of Wool Selling Brokers of Australia executive director Paul Deane said buyer demand improved as the week progressed.

“By the end of the week buyer demand had improved leaving the EMI stable in local currency terms,” he said.

“Despite the EMI unchanged in early trading, price moves were mixed by micron.”

Prices in the 18 micron and finer fell by 1 to 2 per cent, but wool in 18 micron and above category finished the week unchanged to higher.

“At the ultrafine end of the market, a line of 12.8 micron Merino fleece wool sold for 8100¢/kg greasy, the highest price at auction in more than three years,” he said.

“Pass-in rates were also mixed with Merino fleece from the Northern and Southern selling centres at around 10 per cent.

“But, pass-in rates were notably higher, greater than 20 per cent for Merino skirtings and crossbred wools in the north and at the Western Wool Market.

“For next week, there are currently 51,327 bales scheduled for auction across all three selling regions.”

Mr Deane said next week was the final sale before the annual mid-year three week recess.

“A late week move in the Australian dollar should help support the market,” he said.

“This week, the Australian dollar collapsed from a high of 75.8 US¢ on Tuesday to 74.3 US¢ by Friday morning.

“At current levels, the Australian dollar is the lowest in seven months against the US dollar.”

A total 51, 327 bales are expected to be offered nationally next week.