Stronger demand for Merino non-fleece wools

02 Oct '12

4 min read

The outlook is more promising for the next three sales, with the progressive difference expected to be in the order of minus 9% to minus 10% at the end of that period. The US exchange rate rose sharply on the Friday following the previous wool sale, but the eased during the week, before strengthening on Thursday. Financial analysts attributed Thursday’s lift to a large increase in liquidity in China.

The view among financial analysts appears to be that there is a better than 50% chance that the Reserve Bank will lower the cash rate by 0.25¢ on Tuesday.

It was another good week for skirting types, which generally lifted in price, or held firm during the week; and closed on a strong market. Crossbred types had a generally good week. The market eased slightly on Wednesday, but made gains on Thursday. Oddments were a bit mixed, but mostly had a reasonable week, including a good finish on Thursday.

Buyers for China were dominant this week, followed by strong support from buyers for Europe and India. Highlights from the Australian Bureau of Statistics export data for July for the top five export destinations and three other key destinations follow.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 47,060 bales are currently rostered for sale. Present estimates for the following two sales (Weeks 15 and 16) are 40,913 and 48,150 bales, respectively; an increase of 7.0% over the three sale period when compared with last year.

The New Zealand Merino Company is rostered to offer 1,950 bales in Melbourne next week and 2,000 bales in Week 16.

Australian Wool Industries Secretariat Inc (AWIS)

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