The wool market continued its dramatic reversal last week, to see the EMI head back up 67c or 4.35% to 1609c.
In USD terms, this equates to a rise of 3.8% to hit 1086c.
Since its low of 1342 in early September, the EMI has experienced a 20% upward turnaround. 27,500 bales were offered, with a 7.6% passed in rate.
It was reported that 9% of the offering was withdrawn prior to the auctions, suggesting that growers may not yet be happy with current price levels.
Next week’s larger offering may mean that more growers were comfortable with the level at which the EMI finished the week.
News out of the 2019 Annual Nanjing Wool Market Conference in Shandong, China suggested the need for more 19.5 and 21 µ micron merino fleece, with a potential oversupply of superfine merino fleece.
Nonetheless, prices for all microns rose substantially last week, with the 19 & 20 µ micron seeing the greatest jumps of between 96 and 100c. A generally positive overall conference allowed the EMI to continue to rise, with many manufacturers looking to fill the near-empty greasy wool stores. 434 bales sold on AuctionsPlus wool throughout the week. 16 µ micron wool sold to a top of 1255c greasy or 1937c dry, while 17 & 18 µ micron wool sold to a top of 1397c greasy or 1914c dry.
The news of strong demand for the broader types saw 41% of the 434 bales comprise of 19-20µ micron wool, with a top price of 1271c greasy or 1850c dry.
The week’s overall top price went to 2 bales of superfine 15 µ micron Merino Wool fleece, that sold for 1400c greasy or 2121c dry.
Much like the overall market, the month of September has been a hectic one for AuctionsPlus, with 2836 bales selling as of the 30th September. Next week’s offering of 41,000 bales is a massive jump of 49% on last weeks offering. This suggests a level of confidence heading into next week, with the increased volume enough to test the supposed increased demand.