Home / Knowledge / News / Textiles / Merino wools prices remain strong at Australian auctions
Merino wools prices remain strong at Australian auctions
Oct '17
Merino wools prices remain strong at Australian auctions
Prices of merino wools of all types and all descriptions remained stronger from the outset and pushed upward right through to the close of selling during the sale week 15 ending October 13 at Australian wool auctions. Crossbred prices initially retreated but levels consolidated on the final day, as buyers purchasing intent became more willing.

The Australian wool exchange (AWEX) eastern market indicator (EMI) advanced by another 1 per cent or 16ac/clean due once more to the advance of prices being paid in the merino sector. The EMI closed the week at 1566ac which is 19 per cent higher compared to the same sale as last season, the Australian Wool Innovation Ltd said in its ‘Wool Market’ weekly report.

The foreign exchange currency markets played outside the considered norms during the week as the Chinese yuan (CNY) and US dollar (USD) cross rates against the Australian dollar (AUD) behaved in a manner rarely seen. The CNY is generally understood to be unofficially pegged against the USD but the week saw the CNY depreciate by 1.2 per cent against the AUD whilst the USD barely moved at 0.2 per cent lower. As such the USD EMI lifted by 10usc to close at 1224usc/clean kg and the CNY indicator acted conversely and fell albeit just slightly.

The demand for all merino wools remained strong and gains of 40 to 60ac were achieved during the week. The past few weeks had seen a large portion of interest focusing on the super fine (finer than 18.5 micron) fleece sector. Buyers were initially cautious earlier in the season as large volumes within this market segment started to appear registering typically hard to place weak staple strength readings combined with high PobM (position of break % in the middle). Remarkably, the past few sale weeks had seen these types perform the best and selling under the most intense competition of any types, the report said.

The week saw some staggering results as some growers selling tender super fine clips averaged A$3,300 per bale for their fleece lines, with some readings as low as 16nkt within the clip. Almost all this interest is stemming from China.

At the other end of the spectrum, the best super fine wools on offer, and typically the domain of the Italian weavers, look the best value. Whilst still selling at an average premium of around 100ac, and getting strong returns for growers, the price gap between best and lowest quality has narrowed considerably. With the vast difference in top yields achieved, this price variance would be completely eliminated, and price in top per kg of wooltop would end up lower than the cheaper first cost wools, according to the report.

The 19 micron and broader merino wools also came under strong attention from buyers and prices escalated by a general 10 to 40ac. Merino skirting types showed the same tendency as their fleece counterparts with the 18.5u and finer most sought and 50ac dearer. Cother skirting types advanced 15 to 20ac. Cardings slowly continued their rise and added 30ac. Crossbred wools of all types were under price pressure from the outset and lost 35ac for the week.

Competition was strong from all buying sectors, but Chinese top makers were notably more active as reports filtered through of significant sales of Chinese wool tops into Europe. Forward sellers remained the main buying source, but indent and top making orders ably supported as did the Italian interest on better wools. Some Indian orders also were evident, but it is not clear whether they were indented or firm orders needing completion. “Widespread would be the term to best describe the interest,” the report said.

Next week, a larger offering of 46,500 bales will be put for auction at the three centres. Prices are expected to hold up as sentiment continues to remain good. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Sri Lanka reduces VAT on imported fabric to 5%

Textiles | On 24th Sep 2018

Sri Lanka reduces VAT on imported fabric to 5%

Considering the requests made by the stakeholders in the fabric...

Courtesy: Andritz

Textiles | On 24th Sep 2018

'Strength of economy, demographics drive nonwovens demand'

The strength of the economy and demographic trends are the main...

ITC helps bolster Chinese investment in Ethiopian textile

Textiles | On 24th Sep 2018

ITC helps bolster Chinese investment in Ethiopian textile

Major Chinese textile firms are stepping up sourcing and investment...

Interviews View All

Veronique Lee, Modavanti

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search