“Spirited” bidding gives sellers an edge
The wool market is drawing close to the end of year recess and like many of us, exporters were spurred on to fill their orders to ensure they make shipping cutoffs. Demand kept slightly ahead of the increased supply, with most categories posting small increases on the week.
The Eastern Market Indicator (EMI) rose 11 cents for the week to close at 1,503 cents. The AU$ had another positive week, rising .05 cents to US $0.689. In US terms, this pushed the EMI up 14 cents to 1,035 cents.
The Western Market Indicator gained 10 cents for the week to finish at 1,614 cents. Mid micron fibres received most buyer interest, with prices 20 to 40 cents higher for the 20 and 21 MPGs. AWEX reported that all types and descriptions enjoyed the scramble for volumes.
The national offering was significantly higher this week with an extra 4,393 brought forward. The total offering was 42,542 bales. With the rising market, the pass in rate fell; back to 10.7%. This meant that 37,985 bales cleared to the trade. While this is the highest weekly volume of bales sold so far this season, it was still 4,544 bales fewer than the same week in 2018. The total lag in bale clearance from this season to last is currently at a difference of 107,825 bales.
The dollar value for the week was $61.89 million, with the average bale value sitting at $1,629, drifting 16 per bale below last week’s average. The combined value so far this season finally tipped over the billion-dollar mark to $1.007 billion.
The crossbred sector saw mixed results between selling centres. In Melbourne prices lifted by on average 20 cents while Sydney ranged from 15 cent losses to 7 cent gains for the 26 and 28 MPG respectively. The Merino Cardings Indicators defied the wider market again, but this time contracting, with losses of 15 to 20 cents.
The week ahead:
Next week is the last week of sale before the wool market breaks for Christmas recess. 39,430 bales are currently on the roster, with sale days on Tuesday and Wednesday across the three selling centres.
Sales will resume on the week of the 13th of January.