Wool Report By Moses And Son

Week S39: The AWEX EMI closed on 1375- down 9c at auction sales in Australia this week. 44,722 bales were offered with 86.9% clearing to the trade.

The market continued to trend lower, opening cautiously on Tuesday, posting a loss of 14c as buyers price levels wound back from last week’s levels.

Conversely, Wednesday market experienced more spirited bidding as reports of bills of lading for a number of consignments were communicated to the exporters.

Simply put, this meant letters of credit awaiting finalisation were now close to be complete allowing more finance into circulation for this week’s purchased. Subsequently this added 4c to the EMI on Wednesday and setting up a better close for the week.

Melbourne sold in isolation on Thursday and was able to add 1c to the EMI to close out the week. Interestingly, Melbourne prices gyrated more violently than Sydney highlighting the issues with volume and their logistic bottleneck at the dumps and shipping channels.

Merino Fleece felt the early price pull back on most wool types, and at the end of the day Melbourne had falls of 20-30c and Sydney about 10-15c. Wednesday saw good competition on most types with most operators active demonstrated by more spirited bidding.

Merino Skirting was described as being sloppy on Tuesday with exporters picking the best of the lots to fill indent and more urgent orders. Wednesday was a complete change to more speculative purchasing patterns and recouping most of the losses recorded earlier in the week.

Crossbreds purchasing continued to be selective depending on the quality of the classing and the technical specifications. The losses were 10c to 15c.

Merino Cardings mirrored the merino combing trend, showing a reasonable recovery on Wednesday. Crossbred oddments were irregular, largely dependent on the micron and colour.

49,206 bales are scheduled to be offered in Sydney, Fremantle and Melbourne selling over two days.

~ Marty Moses

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• Wool