The EMI posted a healthy 12c rise in USD as sales resumed after a one week Easter recess offering 54,409 bales with a credible 94% clearance.
The weaker trend of the past weeks looked set to continue over the first two sale days before the positive change emerged on Thursday.
This resulted in the emergence of solid business signals which converted into a 12c increase in the EMI on the final day of selling.
The renewed interest was evident on most fleece and skirting types that have been struggling over the past three weeks.
Merino Fleece saw the medium micron categories post solid rises on the final days whilst the fine, Superfine and Ultra-Fine lots that marked time under the pressure of the large offering of average style and specified wool combing wool.
Merino Skirtings mirrored the fleece lots with increased buying pressure continuing on the lots bearing <2%vm and those lots with best specifications, however the interest on the lower style and higher VM lots was certainly elevated on past weeks especially from Chinese buying interest.
Cardings posted a solid weekly rise, averaging 27c across all centres.
Crossbreds continued their positive pre-Easter trend with rises between 30 and 40c posted on the 30 and 28 MPG’s.
Michael Avery from SAW Forward Market Report: The spot auction started the week listlessly recording losses over the first two days.
There was little confidence shown over the Easter and Chinese holiday break and this translated to the merino qualities continuing to lose ground as it had done for 9 of the last 10 auction days dating back to the beginning of March.
Sentiment improved in the forward late Wednesday as the market looked to find a level. Solid bidding on the forwards saw the May 21.0 contract trade close to cash and triggered renewed interest in the spring and beyond. Although the market still has a forward discount from an historical position the hedging strategy taken by sellers this week looks sound.
Market Commentary: Last week’s sales totalled $97.45m and is the 4th highest weekly sale of wool sold on record since 1996.
The YTD total for wool sold at auction in Australia totals $2,692.15m converting to an average $1882/bale sold – up 18% year on year.
Volumes for next week’s sale step back down to 40,596 bales with the following week estimated around the 40,000 bale mark.
From that point onwards Australia traditionally offers diminishing amounts right up to the 30th June, I can’t see why this year will do anything different, especially as the season is diminishing quickly with the lack of rain across the majority of the wool producing areas with supplementary feeding (meals on wheels) in full swing. It’s such a great time to be in sheep and wool.