Wool market update

The Australian wool market lost ground again this week with majority of merino fleece MPG’s losing 60 to 100c. Finer microns were again most affected, while 19 microns and broader suffered the least.

Fleece wools at this time of the year are presenting with improved style, which is aiding in narrowing overall discounts. Wools are similar in average vegetable matter, with slightly lower Newton per Kilotex (NKT). Mid breaks are at their seasonal low also.

The largest daily fall occurred on the first day of sale with the EMI losing 43c while the second and final day the overall market while down resulted in an 18c drop overall in the EMI.

Of note today within the NZ offering was a line of wool measuring 12.7 micron, which returned 40,000 cents greasy. Sale prices between 3,000 to 4,700 cents greasy were regularly achieved for lots within 13 to 14 microns.

Today’s closing EMI is 27.9 per cent(pc) ahead of the same time last season and a total $88 million dollars higher in total value. The retreating wool price has seen less wool eventually being sold to overseas mills due to sellers remain bullish and setting reserves that saw a quarter of all wool offered this week failing to sell. Of the 41,000 bales originally rostered this week, (which included 2,569 bales ex New Zealand), 28,589 bales eventually sold to export markets.

Season to date, the number of bales offered for auction is 3.3pc less for than the same time last year. AWTA (Australian Wool Testing Authority) figures however, are showing 16pc less bales being tested when compared to the same period.

Next weeks (week 17) sale is rostered at 40,124 bales, very similar to the last two weeks. It will be held over Tuesday and Wednesday in its standard format.