The Australian wool market was largely unchanged this week with a steady performance as the local currency remained stable.
The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) gained 6 cents (0.3%) for the week to close on 2,094 cents per kilo clean on Thursday 13 September. In US dollar terms, the EMI also rose by 6 cents (0.4%) to 1,503 US cents.
The Australian dollar against the US dollar was relatively unchanged during the week after the steady falls from around 74 US cents in July. It finished 0.10 cents (0.1%) higher for the week to close at 71.81 US cents on Thursday.
This week’s total national offering was 34,064 bales, compared with 38,516 bales last week, resulting in a clearance rate of 97.4%.
Sales were held at all three selling centres on Wednesday 12 September and Thursday 13 September. On Wednesday the EMI rose by 9 cents to 2,097 cents but in US dollar terms fell by 9 cents to 1,488 US cents. On Thursday the EMI fell by 3 cents to 2,094 cents but in US dollar terms rose by 15 cents to 1,503 US cents.
AWEX reported that trade interest this week was focussed on the finer microns, which all added around 30 cents clean over the three days. The better types continued to attract attention amidst the drought in the eastern states affecting the offering.
AWEX added that whilst key staple measurements (including strength and position of break) for Merino fleece types remain healthy, yield is showing the results of the dry weather and is around 2% lower (66%) when compared to the same time last year (68%).
The broader types (20/21/22 microns) were approached more cautiously this week and these tended to lose ground, particularly on the final day.
Among the MPGs for the Merino types, 16.5 microns lifted by 58 cents (1.9%); 17 microns was up by 30 cents (1%); 17.5 microns rose by 37 cents (1.3%); 18 microns increased by 37 cents (1.4%); 18.5 microns lifted by 25 cents (1%); 19 microns was up by 10 cents (0.4%); 19.5 microns gained 8 cents (0.3%); 20 microns decreased by 3 cents (0.1%); 21 microns fell by 3 cents (0.1%); 22 microns declined by 6 cents (0.3%); 23 microns and 24 microns were both unchanged.
Merino skirtings were reasonably resilient during the week and generally closed ahead of the previous sale.
Crossbreds showed little overall change. Among the national AWEX average MPGs for the crossbred types, 25 microns fell by 1 cent (0.1%) 26 microns gained 6 cents (0.4%); 28 microns was up by 1 cent (0.1%); 30 microns increased by 7 cents (1%); and 32 microns was unchanged.
Oddments were mixed, with Merino cardings generally a touch softer.
AWEX reported that the total value of the wool sold this week was AU$82.9m (AU$2,500 per bale), taking the season total to AU$679.7m, AU$123m above the same time last year – an increase of 21%, despite the 13.5% fall in the number of bales offered. Buyers for China were dominant, with support from buyers for Europe and India.
Looking ahead, offerings for the next three weeks are expected to be 7.7% less than in the same period last year. This continues the trend seen in the season to date. Next week (Week 12) the offering is forecast to be 36,561 bales, followed by 34,830 bales in Week 13 – a designated Australian superfine sale – and Week 14 37,670 bales.
