Week ending 18 May 2018 (Week 46)
This week saw a continuation of some the strongest demand for Merino wool ever seen at Australian wool auctions. From the outset of selling, buyer competition was intense and the aggressive bidding caused immediate price gains of 30 to 50ac across the entire offering. This buying intensity flowed through the entire two days of selling, but notably gathered momentum on the final day and a further 50ac was added to wool values. Additionally, more wool types were caught up in the action on the closing day, as the finer edge of the comeback and crossbred sectors (25 to 27 micron) also produced price gains of around half a dollar per kg.
Week ending 11 May 2018 (Week 45)
After a lack lustre series of wool auction sales last week, this week saw the complete reverse. Australian wool auctions produced action aplenty from the outset and all to the positive. The main impetus centred on Merino wool with the fleece sector the most sought after as overseas users placed orders to renew the rather empty greasy wool pipeline in front of machinery globally. China was again dominant in the demand stakes and seemed intent on getting set for quantity, somewhat irrespective of price as supply fears around the availability of the quality wool required grows. Meanwhile the foreign exchange rates of the AUD versus the USD is at it’s lowest level since the middle of June 2017.
Week ending 4 May 2018 (Week 44)
Australian wool auction markets did very little this week as far as price movement are concerned. Just a few minor adjustments in price levels were recorded and mainly downward, notwithstanding the fact that a lot of wool on offer is coming off record highs. Not all selling centres were affected adversely as the Western Australian centre at Fremantle demonstrated, as that market surged forward above and beyond the Eastern state levels, which is a rare circum-stance. The AWEX (Australian Wool Exchange) EMI (Eastern Market indicator) drifted slightly throughout selling and backed off 10ac to conclude the selling week at 1836ac per clean kg.
Week ending 27 April 2018 (Week 43)
All signals led to a dearer market this week at Australian wool auctions, and on the surface those expectations were largely met, but with some overriding caveats. Some extravagant gains were made on local markets, particularly within the comeback and crossbred sectors (24 to 32 micron) which is a break away from season-long trends. Indicative of this was the 25 micron price guide lifting by an extraordinary 149ac. Within the Merino sector though, a substantially weaker AUD (Australian dollar) masked some weakness of demand for the current deteriorating quality of wool on offer due to adverse seasonal conditions across the nation.
Week ending 20 April 2018 (Week 42)
A competitive environment saw strong gains across all wool types and descriptions at Australian wool auctions. Price gains of well over 3% in AUD (Australian dollar) were commonplace. The AUD also strengthened against the USD (US dollar) by 0.7% for the second consecutive week and so gains in USD terms were even greater. The AWEX (Australian Wool Exchange) EMI (Eastern Market indicator) gained a very healthy 49ac to close at 1825ac per clean kg. This level represents a 21% increase from just one year ago, or A$3.13 per clean kg higher.
Week ending 13 April 2018 (Week 41)
Following the weeks recess in auction sales, Australian wool markets performed admirably this week despite the large volumes on offer. Merino types of all descriptions sold solidly and finished the week at similar levels whilst the crossbred and carding sectors sold to a dearer tone throughout. The AWEX (Australian Wool Exchange) EMI (Eastern Market indicator) gained 4ac to close at 1776ac per clean kg which is 264ac higher than a year ago. Despite all currencies used in wool trading appreciating by varying degrees between 0.7% and 1.2 % against the AUD (Australian dollar), the wool market bucked that usually negative causing reaction on AUD pricing locally and continued upward. By the close of auction selling the EMI when expressed in USD (US Dollars) was 1% dearer or plus 14usc at 1377usc per clean kg. This eliminated all the losses that occurred in the last sale pre-Easter in that currency.