Week Ending 17 February (Week 33)
Record highs ended the week at Australian wool auction markets during a series that saw prices resisting adverse currency fluctuations and initial reticence by overseas bidders to pay higher levels. Tuesday was a standalone sale which consisted of a nice selection of Tasmanian wool sold in Melbourne. Most types were in the super-fine Merino segment. Prices were all quoted as being dearer for wools finer than 18 micron and slightly off the boil for 18.5 and broader. This proved to be the trend for the rest of the selling week. The Crossbred offering started on Wednesday and it was clear from the outset that all types and descriptions would continue the reversal of their season-long woes. Prices pushed higher for the second consecutive sale and added to the improved clearance rate, but crossbred wools are still topping the passed- in rates as some growers continue to resist the levels being offered.
Week Ending 10 February (Week 32)
The keen purchasing interest continued unabated at Australian wool auction markets this week. Price rises were registered across the offerings, with the Merino sector again being the main recipient of the spot buyers willingness, or rather, necessity, to pay more. The strength of the European orders in the rooms was intense and the better specified finer lots were heavily targeted and bought at ever increasing levels. Pleasingly the crossbred and comeback type segments also recorded a bounce by the end of the week., making it a very good selling week for growers of all wool types.
Week Ending 3 February (Week 31)
The underlying strength of the Australian wool market, particularly the Merino sector, was again very clear for all to see this week. Numerous factors could have conspired against the positive trajectory of the market but didn’t, including adverse foreign exchange rates in USD,CNY and Euro against the AUD, a selection that is diminishing both in volume and quality, and our major customer, China, celebrating a national week holiday for their New Year. Once more, resistance to the upward movement was tried by buyers, but failed dismally, as global competition ensured prices remained predominantly strong.
Week Ending 27 January (Week 30)
Whilst the market price levels fell on most type categories this week at Australian wool auctions, the result was considered by most participants as surprisingly strong. The Eastern Market Indicator (EMI) fell 1.5% or 22ac clean/kg to 1412ac clean/kg. In AUD terms, the current level of the EMI is over 10% higher than at the same period last season, but when expressed in US dollar terms, it is far more impressive at 163usc clean/kg higher or 18%. Adding weight to the overall improvement in demand for all Merino types is that this has occurred in a season that has offered almost 65,000 bales more or 7% more volume compared to last year.
Week Ending 20 January (Week 29)
The positivity surrounding the Australian wool markets continued into this weeks selling at auction. Despite the very large offerings of over 56,000 bales and disadvantageous foreign exchange rates in all of the major trading currencies , the Eastern Market Indicator (EMI) still managed to forge ahead by a further 12ac clean/kg to conclude the trading week at 1434 ac clean/kg. This is the highest closing level ever recorded in AUD terms.
Week Ending 13 January (Week 28)
The wool market roared back to life after the three week Christmas break with three figure gains across many Merino microns. Despite the large offering of 51,300 bales, the Eastern Market Indicator (EMI) gained 67 cents to finish the three day trading week at 1422, it’s highest point in over five years and just three cents short of its all time high set back in 2011. The EMI in US dollar terms lifted 56 cents to 1061, showing true demand and concerns over supply are driving the current bull market for wool rather than currency fluctuations.