The second week of positive price outcomes was welcomed by both seller and buyer – a much needed reversal of the 292c landslide experienced since June 21st.
The 31,889 bale offering was met with spirited bidding, as last week results were ratified in the room, and from then on it was two days of steady increases until the last lot was offered.
Merino Fleece saw the largest rises (100-118c) in the 19-21 MPG’s, the 18-18.5 MPG’s added 65-72c whilst the 16-17.5 MPG’s adding a meagre 15-27c.
Merino Skirtings were unable to match the rises of the fleece however rises of 40-80c were measured for the week with the largest increases focussed in the lots containing low VM.
Crossbreds posted rises of 50-105c with limited offerings hindering quotes in the northern region, however it was the finest microns in this category that attracted the most attention.
Merino Cardings were also able to continue their positive trajectory adding 80c in the northern markets.
Commentary: Support was widespread but the noticeable leaders were buying for Chinese interests. In the fleece, bidding was dominated by Tianyu and PJ Morris who set the pace – anyone else who wanted to purchase had to match or better the price and so the auction became alive with the beautiful noise of panic buying.
Endeavour, Techwool and Tianyu mirrored this in the skirtings whilst the cardings were dominated by Michell and Endeavour.
Next week we see 36,477 bales go under the hammer and whilst the offering is down 17.7% in bales compared to the same time last year, the actual figure of clean wool has now reached -20%. With three weeks of sales, one would be naïve to think we can continue to add 40c/day to the EMI, but I think volatility will be the new normal from here on.
My only concern is that this week’s price movement will attract some more wool onto the market that has been passed in previously.
Whilst the weekly offerings are well below last year’s numbers, any substantial increase in the estimated numbers could spook the buyers from the positive frame of mind they currently possess. I believe next week’s 36,447 bales will be met with spirited bidding.