Despite the large offering of 51,300 bales, the EMI in US dollar terms lifted 56 cents to 1061. This shows that true demand is driving the current bull market for wool rather than currency fluctuations, Australian Wool Innovation (AWI) said in its wool market commentary for the week.
“The first day of trading for 2017 saw frenzied buying with pent up demand particularly for finer wools driving three figure gains across many Merino microns. Across the second and third days of trading the market lift continued but in a more subdued tone. Perhaps the biggest development for the week was seen on Thursday with many expecting the one cent gain in the Australian dollar overnight to push the market in reverse; however the market defied the sentiment and continued its rise,” AWI said in its weekly wool market report.
By the end of the week all Merino microns lifted to the tune of 70 to 150 cents with both better quality fleece lines and lesser types enjoying increased attention from buyers.
Trading rooms saw all buying segments active with indent, forward sellers, processors and even some speculators working hard to secure wool. Chinese, European and Indian interests were all active in the market. Even though 51,300 bales were up for sale, this week’s offering included one of the smallest percentages of Merino wool for the selling season and there is concern over the amount of finer wool coming onto the market in the future.
Crossbred wools for the week were dragged up by the Merino frenzy and while the volume of these wools was heavy, they lost only five to ten cents in general in a market environment that expects these wools to get cheaper. Carding in general were 30 to 40 cents dearer pushing all three carding indicators to record territory, continuing a strong run that has trended for some time and the overall pass in rate of 5 per cent was 4.3 per cent lower than the last sale of 2016 and shows woolgrowers are in general, keen to accept these prices, not surprisingly.
Next week, the offering will be even greater at 55,394 bales across three selling centres with only Melbourne selling on Tuesday. (RKS)
Fibre2Fashion News Desk – India
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