Australian wool EMI drops 0.8% this week

27 Nov '20

2 min read

Pic: Shutterstock

Price movements were minimal this week at Australian wool auctions. A 9ac depreciation of the Eastern Market Indicator (EMI) occurred which closed 0.8 per cent weaker at 1150ac clean/kg. The EMI in USD terms maintained at similar levels, being just 1usc higher at 846usc. The most notable influence on wool values stemmed from the foreign exchange rates.

The AUD strengthened strongly against all the major trading currencies, during the week. "Demand was predicted to be soft from the outset, which it was initially, but as the week progressed, buying intensity from most operators lifted and competition was strongest at the close of selling, except the crossbred sector," the Australian Wool Innovation (AWI) said in its commentary for sale week 22 of the current wool marketing season.

The scheduled 41,527 bales failed to materialise again, and 36,535 bales were offered, a 12 per cent drop from the previous Friday. Add the subsequent passed in rate of 12.1 per cent for this week and this equates to 22.6 per cent of the original roster not moving through the supply chain.

"A good spread of purchasing interest was evident this week as processors, indent operators and traders were all active. As prices lowered or buyers filled current requirements, there was a quick buyer replacement that stepped in and helped maintain the healthy competition and price levels, indicative of strong order books present at the moment," AWI said.

Super fine (18.5 micron and finer) merino fleece and skirting types were well supported with better tested types up to 25ac dearer, but poorer wools barely maintained their rates. 19.5 micron was strongly sought and gained 15ac whilst the 20.5 to 23-micron wools were 10ac cheaper. Crossbreds were out of favour and fell 45 to 70ac.

Improved growing conditions across most of Australia are becoming evident in the wools now hitting show floors with a noticeable increase in fibre diameter and vegetable matter in merino types broader that 20 microns a direct consequence of a better season in most areas, according to AWI.

For the next week, nearly 42,000 bales are rostered for sale.

Fibre2Fashion News Desk (RKS)

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