Australian wool prices hold firm in pre-recess auctions

The Australian wool exchange (AWEX) eastern market indicator (EMI) decreased by just 2 ac/clean kg to close out the last ‘half’ of the season at 1522ac/ clean kg, which is 16 per cent higher or 211ac better than the close of 12 months ago, the Australian Wool Innovation said in its ‘Wool Market’ report for the week ending July 14, 2017.

In USD terms, the EMI shot 15usc higher to 1173usc/clean kg as the stronger AUD failed to dampen the current strong demand. The EMI in USD closed at 1173usc/clean kg which is 175usc or 17.5 per cent higher than last year, the report said.

The selling week commenced with buyers set to be much keener in their approach to purchasing, but still very much price sensitive. Most of the fresh demand appeared to be on all merino fleece types broader than 19 micron and all merino skirtings and crossbreds. The large availability of merino fleece finer than 19 micron had buyers very wary and the carding sector looked to be in a lull. As it panned out this was very much the order of trend the market immediately tracked to, so the week produced very little to surprise participants.

“The much stronger AUD against the USD by around 1.5 per cent probably took a bit of impetus from the local market, as did the relatively large offering of over 46,000 bales, but the underlying strength of demand was the underwriting factor to the firm market results,” the report said in its analysis.

The major buyers of the previous week continued their purchasing operations much to the similar patterns of the first week. The largest local trader/exporter and the largest Chinese indent buyer set the pace and others basically fell into line behind them just picking away at the offering only. As Fremantle joined in to selling though, another large local exporter exerted strength into the better types of the merino market and completely swamped other orders in the market. This strength continued into the final day and saw a strengthening on most types as other traders pushed to complete outstanding positions.

Top makers were also far more active during the week and this took care of the sale lots containing higher vegetable matter (vm) and wool descriptions of ‘off standard’ described types. Their stronger activities was also responsible for the dearer (+10 to 20) merino skirting market, as they looked for machinery fodder as the immediate global supply of wool in general goes into hiatus for at least a month as Australia and South Africa remain in sale recess mode. (RKS)

Fibre2Fashion News Desk – India