Wool market update - 27 October

The Australian wool market has recorded an overall unchanged result, with varied results within different regions, sectors and micron groups.

The largest gains for the week were seen in the finer merino fleece types, strong widespread competition in this sector helped to push prices higher. This was highlighted in the individual Micron Price Guides (MPGs) for 17.5 micron and finer which rose by between 9 and 23 cents and in the 18.0 micron MPG in the West (the finest published MPG) which added 29 cents for the series.After these MPG rises the results as mentioned were varied, plus and minus results were recorded across similar types Australia wide.

The AWEX Eastern Market Indicator (EMI) closed the week unchanged on 1,139 cents. The EMI continues to trade well below this time last year, the EMI is 161 cents, or 12.4% lower than Week 17 last season. Over the past year the finer microns have suffered greater falls than their broader counterparts, narrowing the price differentials between microns.

This is best highlighted looking at the finest (16.5) and broadest (22.0) MPGs in Melbourne. In the corresponding sale of the previous season these two MPGs were 2,323 and 1,282 cents respectively, a difference of 1,041 cents. In this series these MPGs are now 1,809 and 1,260 cents respectively, a difference of just 549 cents.

Notable this week, the 1PP panel approved five separate lots. The 1PP definition is “wool produced in Australia which exhibits superlative quality and soundness and be prepared in the best possible manner” in addition to meeting specific technical parameters, including being assessed as Style 1. This impressive feat was achieved not once but five times by the growers of HILLCRESTON/BIGGA.  Next week 47,202 bales are currently expected to be offered in Melbourne, Fremantle and Sydney.