“Given the low volumes and overall strong market, the clearance rate was underwhelming at 89.1 per cent of all wool offered being sold,” the Australian Wool Innovation (AWI) said in its commentary for the wool week 51 of the current wool marketing season.
This week, it appeared as if “the impetus of strengthening wool prices from the healthy prompt demand-driven scenario of the past few weeks has stalled for the time being. Foreign exchange rate movements for the week all went to the favour of local AUD values,” the AWI commentary said.
The usually positive price movements caused by lower-than-normal supply being available (WA did not sell this week) failed to materialise in general, but the Merino wool types broader than 19 micron did post robust gains of up to 40ac clean/kg. This is the wool type area Western Australia contributes strongly to nationally by volume. Conversely the finer than 19 micron Merino wools, most skirtings and crossbreds on offer showed losses in value of between 5ac and 30ac. Carding types were largely unchanged.
“Auction purchasing saw the first stage manufacturers again being outgunned by local and Chinese traders and also Chinese indent operators. Australia’s largest and most influential trading house and one strong indent buying operation for Chinese delivery almost solely led the spot market price setting. In particular, strong interest for all types and descriptions as 19 to 22 micron dominated the price gains for the week,” AWI said.
However, the quality of the offering is on the improve. Many of the districts that have been affected by prolonged wet weather and problematic feed conditions in paddocks appear to be producing much better wool types and in more volume. VM (vegetable matter) remains relatively higher, but colour, strength and yields of the freshly shorn clips are of good character, according to AWI.
At the next week’s sales, which will see auction at all the three centres, around 45,000 bales are expected to be on offer.
Fibre2Fashion News Desk (RKS)