WOOL prices improved in all categories at auctions across Australia this week, apart for fine wools in the Sydney sale.

The Australian Wool Exchange said the market recorded rises across all three selling days in this series, albeit small ones, to record the first overall weekly increase since 10 October.

“The national quantity continued to be relatively small for this time of year; there were 35,505 bales available to the trade, 3499 fewer.

“This compared to the 42,682 bales on offer at the corresponding sale last season.”

The percentage of bales passed-in by brokers almost halved from last week to 4.8 percent, down 4.7pc.

AWEX said with Melbourne having a Public Holiday on Tuesday, it was just Sydney and Fremantle in operation on the opening day of selling.

“Fremantle recorded increases across all published Micron Price Guides (MPGs) of between 9 and 14 cents.

“Sydney posted mixed results; however, the rises were enough for a 3-cent rise in the Northern indicator, that in turn was enough to push the benchmark AWEX Eastern Market Indicator (EMI) up by one cent.”

AWEX said this one-cent rise halted the downward run of the EMI that had fallen for the previous six selling days.

“The second day of selling all three centres were in operation, and in general terms the market continued to rise.

“The Merino fleece MPGs price movements across the country ranged between minus 2 and plus 21 cents, only the 17.5 micron and finer MPGs in the north posting losses,” AWEX said.

“The EMI added 5 cents for the day.

“The final day was a standalone Melbourne sale and again, small MPG movements were recorded,” AWEX said.

“The EMI added another cent to close the week.”

AWEX said the market fluctuations continue to be small, with the one-cent rise in the EMI marking the tenth consecutive selling day when the EMI movement has been 5 cents or less (both positive and negative movements).

“The EMI closed the week 7 cents higher at 1132 cents/kg clean.

“Due to a strengthening of the Australian dollar (AUD), when viewed in US dollar terms the increase in the market and the US EMI was more significant,” AWEX said.

“The EMI added US13 cents for the series.”

AWI

Australian Wool Innovation trade consultant Scott Carmody said activity at this week’s Australian wool auctions turned very much to sellers’ favour.

“A staggered selling week from Tuesday through to Thursday saw each day post small general gains alongside a usually price tempering, strengthening AUD against the majors.

“Bidding was strong and highly competitive throughout selling and it was clear that the market closed the week at the strongest point at the solo Melbourne sale on Thursday, which augers well for the immediate future,” he said.

“Local trader exporters again exerted their pent up purchasing power this week, and dominated the top of buyers list in almost all type sectors.

“This pushed the direct buying first stage top makers to less than normal buying percentages of the offering for the second week running, possibly placing supply pressure on those mills going forward,” Mr Carmody said.

“This is particularly significant as we head into the final six weeks of auctions for the calendar year, prior to the annual three-week recess.

“Once more the flow of the wool onto the market is being managed extremely well to match the current demand,” he said.

“Enquiry is reported by exporters and top makers to be okay and most purchased wool is moving through the supply chain.

“Demand up the chain is decent but not up to the usual veracity for this time of year.”

Mr Carmody said, in addition, the squeezed supply situation leading into the peak wool garment selling season of the Northern Hemisphere winter appears to be holding the market price rather than sending it strongly upward.

All three centres will operate to the normal Tuesday/Wednesday selling days next week and there are currently 34,000 bales listed.