AUSTRALIA’S auction wool market has continued to strengthen, recording its fourth consecutive week of price rises.

The Australian Wool Exchange said the national quantity rose to 40,144 bales, up 1898 bales, and brokers passed in 7 percent.

“On the first day of selling, the benchmark AWEX Eastern Market Indicator (EMI) added 4 cents.

“This stretched the upward run of the EMI to nine consecutive selling days, AWEX said.

“This equalled the run of nine last seen in November 2016.

“On the second day, the market performed with mixed results; however, there were enough positives within the market for the EMI to record a tenth consecutive rise, this time by another 4 cents,” AWEX said.

“The 10-day run of daily rises equalled the run of 10 posted back in May 2016.”

AWEX said a pleasing aspect of the current market spike, has been that it is largely demand driven, as opposed to the common trend over recent months where market movements have been heavily influenced by currency.

“The EMI also recorded rises across both selling days when viewed in USD terms, adding a total of US10 cents for the series.

“When viewed across the last ten selling days, where the EMI has risen in AUD terms, the EMI has only fallen once in USD (4th of March), and even then, it was by the barest of margins (one cent),” AWEX said.

“Across the last 10 selling days, the EMI has risen by 70 cents, an increase of 5.9pc.

“When viewed in USD terms the increase is the same, the EMI has added US47 cents across these selling days, again a rise of 5.9pc,’ AWEX said.

“Unfortunately, the market closed with a negative tone.

“The western region selling last recorded losses in all published Micron Price Guides (MPGs), with only the 21 micron MPG bucking this trend.”

Intense competition for broader Merino wools – AWI

Australian Wool Innovation trade consultant Scott Carmody said all Merino wool types broader than 20 micron came under the most intense of the auction buyer competition.

“Low volumes of this area of production continue to be offered at auction and combined with the current demand, this led to gains of 15 to 20c/kg clean, irrespective of description or faults,” he said.

“The largest of the Chinese top making mills topped buyer lists this week.

“Where holes started to appear in prices, these companies stepped into the market and took advantage of any discounts to the ruling rates of the past few weeks of strong results,” he said.

“This was particularly evident on the more difficult specification sale lots which the traders find harder to place into their standard contracts.

“These first stage manufacturing machinery owners appear to have a far greater flexibility to their purchasing regime at times.”

Mr Carmody said areas of the offering retracted somewhat though as orders were filled and the Australian Dollar (AUD) strengthened against both the US dollar, USD (+0.74pc) and Chinese yuan, CNY (+0.76pc).

He said most Merino wools finer than 19.5 micron in the Western Australian centre dropped around 15c/kg clean, as did the 17 to 18 micron wools in Sydney.

Crossbred wools sold generally 5c/kg clean dearer on types finer than 30 micron, but 5 cents cheaper for types broader than 30 micron. Cardings sold to a firm market with very little change.

“Since the start of the current season, all wool types and descriptions have recorded modest (+1.8pc on 16.5 micron) to substantial (+15.2pc on the 32 micron) increases to their values,” Mr Carmody said.

“The overall market value, as measured by the Eastern Market Indicator (EMI) has improved 11.1pc or 125c/kg clean since July 1, 2024.”

Mr Carmody said the Western Market Indicator (WMI) is more reflective of just the Merino market.

“That state has production levels of wools finer than 23.5 micron of greater than 98pc of the total wool tested up to this point of the season.

“The WMI has improved 10.5pc since the commencement of the season.”

Next week the national offering is of a similar size. There are currently 40,831 bales on offer nationally.

Sources – AWEX, AWI.