Strong run in price continues at Australian wool auctions this week

“The strong demand that emerged the last few weeks for mainly Merino fleece and skirting wools stayed the course almost till the final day of selling this week. The final day saw just a slight softening in prices at the standalone Melbourne sale as exporters filled forward contracts and indent orders completed their FCL (full container loads = 111bales) quantities,” the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 24 of the current Australian wool marketing season.

The strongly appreciating wool price run continued at Australian wool auctions this week too. In just two weeks, 103ac (+8.4 per cent) has been gained on the Eastern Markets Indicator (EMI) and even more relevant is the 10.2 per cent or 84usc gain on the demand leading USD EMI figure. The WMI USD price has shot up 10.5 per cent in the past fortnight.

However, there was disparity in gains between centres and individual micron prices, but by the week’s end, public quotations at the three centres—Sydney, Melbourne and Fremantle—were the most evenly aligned seen for quite some time, the AWI said.

All Merino combing wool descriptions were a general 60 to 90ac dearer for the week. The better specifications and lower VM (vegetable matter) were well sought, whilst some lower variety sale lots became a little unstable in price towards the close of selling. Crossbred wool and carding types gained a general 10ac/clean kg.

“Whilst these gains are very much a good result thus far, the rises are coming off a low base, compared to and considering the prices achieved through the 2017 to 2020 years. Competing land use is stronger than ever at present for property owners, with many alternative enterprises being available. Wool prices simply must continue to recover value for wool growing to compete against these other options as floods, droughts and bushfires impact heavily at times across Australia,” the AWI commentary said.

Wool auctions will now re-commence after a three-week break on January 9, 2023.

Fibre2Fashion News Desk (RKS)