Home / Knowledge / News / Textiles / Australian wool markets move back to positive this week
Australian wool markets move back to positive this week
13
Apr '17
Courtesy: Wikipedia.org
Courtesy: Wikipedia.org
Australian wool markets moved clearly back to the positive in sale week 40 of July-June 2016-17 as auction prices were sensationally dearer. The AWEX Eastern Market Indicator (EMI) climbed daily and concluded the selling week at 1512ac/clean kg, a gain of 53ac/clean kg for the week. Merino sector recorded gains of well over 100ac/ clean kg.

Buyers hit the market strongly to cover off new and existing open positions leading to gains in the merino sector. Crossbreds were well sought with just the carding segment losing out in an incredibly strong week, building on top of the already historically high price levels, said the Australian Wool Innovation in its ‘Wool Market’ weekly report.

However, with a weaker AUD v USD forex rate the move upwards was less intensive when the EMI is measured in USD but a still imposing 3 per cent rise to 1134usc/clean kg was achieved in a stellar selling week.

While, the merino sector experienced heavy prices rises this week, the superfine and ultra fine sectors (wools finer than 18.6micron) gained a 45 to 60ac/clean kg but it was the 19 to 21.8 micron area that was extreme with a 100 to 130ac/clean kg advance in price levels recorded, with the highest weekly price at the close of selling.

Early in the week it was local traders dominating, but the largest rises occurred when the major Chinese indent buyer joined in through the final day, but those locals had an average up their sleeve and were mainly able to out buy them. As this happened though most other buyers chose to completely avoid getting caught up in that type of aggression and left the action to just those 3 or 4 buyers.

The continuation of the wool market's stunning reversal of fortune after 2 weeks of rapidly diminishing levels was largely expected, but 3 or 4 buyers took the market to sensational daily gains this week. Recent history shows that moves of this scale are not always sustainable, particularly in a growing supply year, however wool growers were happy nonetheless, reflected in the reduced passed in rates of just over 5 per cent.

The erratic movements of the past 2 weeks indicate two major influences as to the way the wool market trading has developed since the supremacy of Chinese buying, the report said.

Analysing further, the report says that it is clear that the local buyers and exporters have their fingers on the pulse of the sentiment of their major clients. “The close relationships between overseas buyers and local operators transfers that demand (or lack of) immediately into the sale rooms.”

The second point is that the hand to mouth method of purchase from the Chinese is way and above the preferred means of purchase. This is evident from both sides, with local exporters exposing themselves to less risk by selling promptly and the manufacturers avoiding the pitfalls of buying too far into the future. This is risk adverse behaviour towards both the fluctuations in the price of wool and any exposure to shifting foreign exchange rates.

Australian auction sales will be in recess next week, and the next sale of 50,000 bales is scheduled to be on offer in the week commencing 24th April. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search