The Australian wool market has recorded a solid increase for the second consecutive week, again driven by gains in the merino fleece sector.
Last week’s rises encouraged more sellers to the market, pushing the national offering up to 43,688 bales.
Although the better style types and wool with favourable additional measurement results attracted the strongest competition, all wool regardless of style or additional measurement results rose, as buyers fought to secure quantity in the rising market.
By the end of the series, the individual Micron Price Guides (MPGs) for merino fleece had risen by between 18 and 59 cents.
The skirtings tracked a similar path to the fleece, with all types and descriptions recording gains, as again buyers fought for market share.
The AWEX Eastern Market Indicator (EMI) rose by 19 cents for the series, closing the week at 1,170 cents, a 1.7per cent (pc) rise.
The overall market increase was tempered by the crossbred sector. The crossbred MPG movements ranged from unchanged to minus 25 cents. These losses prevented the EMI from posting a larger increase.
The EMI has risen for five consecutive selling days, adding 48 cents across this run, an increase of 4.3pc.
The overall market increase was recorded despite a strengthening Australian dollar. The AUD was 0.59 US cents higher than the close of last week. This meant when viewed in US dollar terms the increase in the EMI was greater (in percentage terms).
The EMI added 19 US cents for the series, closing at 767 US cents, an increase of 2.5pc.
Next week’s offering is again forecast to increase, as sellers continue to be encouraged to the market by the price rises.
49,134 bales are currently expected to be offered in Melbourne, Fremantle and Sydney, which is a designated Superfine sale. If this quantity is reached it will be the largest sale since April.
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