On the surface Australian wool markets appeared to falter somewhat this week, but closer analysis at weeks end shows that align-ment of prices across all selling had more accurately occurred. The larger offerings of mainly Merino types allowed buyers to spread their purchasing and this saw a more price sensitive strategy play out. All of the Merino price guides between centres closed at levels remarkably similar and possibly the closest they have been all season. The AWEX (Australian Wool Exchange) EMI (Eastern Market indicator) drifted downwards by 6 cents to close at 1772ac /clean kg which is around 18% or 270ac higher than at the end of March selling a year ago.
A little disappointing was the EMI when expressed in USD (US Dollars. With that currency going in favour of overseas buyers by 0.65% it was less than ideal to see the USD EMI slip by 1% to 1363usc clean/kg. Many trade participants thoughts were the USD price reduction was more reflective of the harder to place wool types on offer rather than an overseas demand issue in play as most types being sought or sold forward were types not that readily available.
The selling week featured a wool sale that was moved from the usual Sydney selling centre at Yennora to the Royal Agricultural Society Sydney Easter Show. The sale saw a bale of 1PP certified wool offered of an incredibly fine fibre diameter of 11.7 microns. This bale realized an auction bid of 25,000 ac greasy per kg which was passed in but subsequently sold for 41,000ac greasy per kg to premium Italian wool buying company G.Schneider. Congratulations to both G Schneider and their client but also to the vendors of the Hillcreston/Pine Hill bale. The presence of such a fine example of the Merino breed helped make the wool sale an attraction to the public and also show sale attending wool growers, wool trade and the media.
Click here to access AWI's Wool Weekly Market Report (PDF 397 KB)