Prices of most Australian merino wools spike upward this week

“To say a dearer market was expected pre-sale would be an understatement. All buyers expected the market was set to rise considerably given the change to sentiment and the new business conditions permitting such a rise to be accommodated. The AUD vs USD forex rate dropped by 2 per cent at the start of the selling and this just accentuated expectations and the subsequent wool value gains. Most contracts had been written at the ruling rate range of 0.7050 to 0.7090 range,” the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 32 of the current Australian wool marketing season.

A large majority of this week’s interest came from the sub-continent and European buyers. The better specified types were the most obviously sought after. Many individual grower-lots achieved 100ac plus increases on last week’s values and in some cases upward of 200ac. This was for mostly the spinners and best top making style clips. After a relatively sedate few months, the Italian competition and purchasing was ‘back to normal’.

Chinese interest remained in play and heightened as the forex went to their favour. It was noted though that the ability by the PRC-based wool interests to buy any sort of volume diminished rapidly as the AUD auction prices rose above their ideal bid prices being placed in front of traders and exporters. Indents from China and Chinese first stage manufacturers were evident but in many cases, they were outbid by other destinations in volumes above and beyond the 80 per cent of our clip they usually accumulate, the commentary added.

By the end of the week, a general 60 to 70ac was added to all merino types. A cumulative gain in this sector of over 100ac has been posted in just two weeks. Crossbred wool types managed to extract 15ac more whilst the carding and oddment wools achieved 30ac price gains.

About 58,000 bales will be available for auctions on Tuesday/Wednesday and Thursday.

ALCHEMPro News Desk (KD)