IT WAS an uneventful week in wool, in Australian currency with little change, however in US dollars prices were more volatile.
The EMI rose by a further 1.9% and has increased by 8.8% since December 15th. The strength of the Australian dollar amazingly has not deterred buyers to any significant extent.
Wool continues to outperform most of the alternate fibres and the present deadly freezing northern hemisphere winter they are experiencing particularly in eastern Europe spreading through to England will no doubt help keep wool sales ticking along.
What also should be kept in mind is the impact of global economic activities continues to be a stumbling block as far as to a substantial increase in greasy wool prices is concerned with the latest prediction that China will overtake the USA by 2015 as the worlds largest consumer of luxury goods.
In Fremantle last week the Western market indicator lost 9 cents to finish the week at 1195c/kg clean. In the North their regional market indicator lost 7 cents and in the South their regional market indicator gained 3 cents, with their corresponding market indicators finishing the week at 1220 and 1174c/kg clean respectively.
37,382 bales were offered nationally.
At last Wednesday’s Western Wool Centre sale 14% was passed of the 3,524 bales offered and at Thursday’s sale 20% was passed of the 5,030 bales offered. In Sydney 8.4% was passed of the 9,744 bales offered for the week and 9.3% was passed of the 19,084 bales offered in Melbourne for the week. Re-offered wools made up 5% of last week’s offering.
New Zealand: 18,900 bales of combined North and South Island wool was offered in Christchurch 27% was passed. The bulk of the offering was coarse crossbred for which prices softened. Mid micron and fine crossbred fleece firmed by 1-2%.
South Africa: 6,180 bales were offered in Port Elizabeth – 4% was passed. The Cape Wools Merino indicator gained 0.5%. AWEX MF5 FNF sound fleece were as follows: 19.0 Micron dropped 1.7%, 19.5 Microns were 0.7% cheaper, 20.0 Microns up 2.1%, 20.5 Microns unchanged, 21.0 Microns up 1.8% and 21.5/22.0 Microns rose 0.4%.
Highlights of last week:
The standout of last week was the demand for 16.5 Microns and finer – these wools improved by 100-150c/kg clean.
Merino fleece categories maintained similar values – some slightly dearer, some slightly cheaper. Merino skirtings continued to meet solid demand and cardings were unchanged. The other good sign for the market was the spread of buyers which was quite even.
Wool Production:
The Wool Forecasting Production Committee last estimate was for a 1.4% increase. This appears to be the opposite on AWTA Testing Data released last week.
The four week forecast points to smaller auctions compared with last season in the immediate future. AWEX data reveals that the volume actually sold 944,479 bales by week 30 was 6.5% down from a year earlier and the lowest volume sold by week 30 in recent history.
Email a friend