AUSTRALIA’S wool auction market improved slightly this week, mainly due to crossbred and broad Merino fleece price increases.

After two weeks of losses, the Australian Wool Exchange said the market recorded a small overall rise in this series, although results were varied across the different sectors and regions.

“Finer Merino fleece types struggled to attract the same level of buyer attention received in the previous series and the result was losses across the board nationally for wool 19.5 micron and finer.

“The Micron Price Guides (MPGs) for 19.5 micron and finer across the three centres reduced by between 1 and 44 cents,” AWEX said.

“The medium to broad microns (20.5 micron and coarser) still received strong support, with widespread competition and spirited bidding helping to push prices higher.

“This was highlighted in the 21.0-micron MPGs in Melbourne and Fremantle which both rose by 15 cents,” AWEX said.

AWEX said the crossbred sector was by far the strongest performer of the week and strong buyer demand helped to push prices higher across the board.

“The standouts were in Melbourne, where the 28 micron MPG gained 30 cents (+8.1 percent) and the 30-micron MPG also gained 30 cents (+8.5pc).

“The gains recorded in this sector combined with the gains in the broad Merino fleece types, were the main reason for the overall increase in the market.”

The AWEX Eastern Market Indicator (EMI) added 3 cents for the week, closing at 1138 cents/kg clean.

“Due to minimal currency movement the EMI also rose in USD terms, the EMI added 2 US cents for the series, closing at 725 US cents.”

AWEX said despite the national offering being higher than the same time last year (2.1pc higher), the total dollar amount of wool sold is well below the corresponding sale of the previous season.

“There has been $559 million worth of wool sold so far this season, 40 million dollars less than the previous season.”

Larger trading houses lead buying – AWI

Australian Wool innovation trade consultant Scott Carmody said auction purchasing followed the exact same pattern as last week.

The large trading houses led the way, supported by indents from Italy, China and India, as well as the usual direct buying by representatives for the large Chinese top makers,” he said.

“Two dominant indents topped the crossbred buyers’ lists, whilst traders were keener than the scouring and carbonizing manufacturers direct buying orders.”

Mr Carmody said fine Merino wool prices are remaining in limbo presently as the usual European buying has failed to materialize thus far in the auctions.

“Some light buying is evident, but by this time last year, the better superfine wools were the domain of European buyers,” he said.

“This year, a lot of those early offerings are heading to China and India.

“The weakness of that European competition is evidenced by the historically narrow price gaps between 17 and 21 micron.”

Next week returns to the normal Tuesday/Wednesday selling pattern and 42,266 bales are currently expected to be offered nationally.

Sources – AWEX, AWI.