Prices falter at Australian wool auction market

However, the crossbred and carding sectors bucked the trend and stayed relatively firm around the established basis, said the report for the week ending May 26.

The AWEX eastern market indicator (EMI) decreased by around 1.8 per cent for the week or 27ac/clean kg to close the week at 1495ac/ clean kg. The stronger AUD v USD led to a smaller fall of 12usc/ clean kg to 1123usc/clean kg when the EMI is measured in US dollars, the report for sale week 47 of the current season said.

The selling week results went largely to the pre sale expectations of buyers and exporters. A sudden lack of interest from many of the larger overseas users had buyers on the back foot and reticent to continue their buy then sell approach to trading. As sales commenced the atmosphere was rather subdued, with coverage of previously sold forward orders seemingly the dominant reason for buying. Buyers were extremely selective throughout the sale week, resulting in some lots being well below their reserve. As such, the week saw growers resisting the lower levels, and over 15 per cent of the wool on offer for the week was passed in.

The selection and type of merino wool is still being dominated by the generally heavier vegetable matter (VM) levels. The 19.5 to 22 micron descriptions held on rather well in comparison to their finer counterparts and losses were limited to a general 15 to 25ac/clean kg. All merino skirtings stepped down pricewise in line with the fleece.

In stark contrast to the merino segment of the market, crossbred types met with good competition and despite the stronger AUD, managed to stay on or about their existing price levels. Again the same with the cardings sector as prices held then strengthened as the season-long strong demand continues.

Just 30,000 bales would be on offer at next week’s auction. Volumes are diminishing but so apparently are the fresh sales required from overseas, the report said. (RKS)

Fibre2Fashion News Desk – India