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Markets consolidate at Australian wool auction this week
Feb '18
Markets consolidate at Australian wool auction this week
Australian wool markets consolidated around the ruling levels at auction in sale week 33 ending February 16. With only the Melbourne centre operating, the Australian Wool Exchange- Eastern Market Indicator (AWEX EMI) slipped by a margin of 6ac clean/kg to close at 1812ac clean/kg, after setting a new daily record of 1820ac clean/kg on the opening day.

“Interest remained high for all wool types, with a surprising concentration of buyers’ attention shifting to the crossbred and not so surprising to the carding area once again. Merino fleece and skirtings were by no means neglected, but some price sensitivity was seen, particularly around the poorer and harder-to-place end of the selection,” the Australian Wool Innovation (AWI) said in its ‘Wool Market’ weekly report.

After massive price gains last week, it expected that the Merino fleece sector would come under some serious price consideration. The stronger Australian dollar (AUD) against the US dollar (USD) hampered any chance of a further rise as the foreign exchange rate went 1.55 per cent against the local market. In USD terms, wool prices in general advanced 1.22 per cent higher for the week to settle at 1437usc/clean kg on the EMI.

In the merino sector, the week’s activity was dominated by a ‘managed decline’ strategy being employed by the big operators, which most other sale room participants were keen to follow and now wanting to set a different course. With sporadic, but good demand still in play, buyers were cautious on the inventory they took on board and seemed to concentrate only on executing outstanding forward commitments and indent orders. “A small amount of speculative buying is starting to be witnessed, but this appears to be only on the sub 18 micron types of better quality, as these types are expected to be in a short supply situation till late winter/early spring,” the report said.

Merino fleece indicators were all generally 25 to 30ac lower for the week, but these figures mask the better-tested types exhibiting low cvh (co-efficient variation hauteur) and low pobm (position of break in middle) that were rock solid, and in many cases, dearer for the sales.

In a good turnaround for the fortunes of the broader wool types, almost all types and descriptions on offer in the comeback and crossbred wool sectors were dearer by 10 to 20ac clean/kg. Cardings also gained value by similar amounts in general terms.

For next week auction, there will be nearly 42,000 bales up for sale. “With most Chinese returning to their home towns to celebrate the Spring Festival New Year, sporadic interest is likely from that nation with the local buyers and other destinations key to setting the direction of the market,” AWI said. (RKS)

Fibre2Fashion News Desk – India

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