Optimism in Australian wool market as prices rise

15 Oct '12

4 min read

Tuesday’s rise was mostly attributed to a strong Chinese share market following the holiday break. The increase in Australian jobs in Thursday’s job data was considered to be the main reason for Thursday’s rise.

Skirtings continued to be in very strong demand. AWEX reported gains of up to 40¢ greasy in Newcastle on Tuesday. This was followed by rises in all centres on Wednesday and Thursday. Crossbreds had another good week, with good gains from 28 to 32 microns. All oddments also had a good week. The average Merino Cardings Price Guide was up by 2.4%.

Buyers for China were dominant this week, followed by strong support from buyers for Europe and India. Buyers for Italy were very strong in Newcastle.

Sales will be held in Sydney, Melbourne and Fremantle next week, when 51,861 bales are currently rostered for sale. Present estimates for the following two sales (Weeks 17 and 18) are 39,920 and 46,500 bales, respectively; an increase of 15.8% over the three sale period when compared with last year. The New Zealand Merino Company is rostered to offer 2,000 bales in Melbourne next week and 2,000 bales in Week 18.

Australian Wool Industries Secretariat Inc (AWIS)

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