Large gains were seen across all types last week, with the EMI finishing up at 1594c.
This equates to a gain of 49c or a rise of 3.2%. In USD terms, the EMI sits at 1104c. 17µ micron wool saw the highest gains, rising 70c to finish the week at 1992c.
Following a few weeks of relative stability in the EMI, this dramatic rise in price has been viewed negatively by some, calling it an overreaction and a reflection on the sensitivity of the current market.
The main reason for the excitable market is likely the ongoing supply issue. Australia’s adverse climate conditions are reflected globally, leaving supply much lower than forecast.
Typically, a drop in supply would lead to higher prices, but it appears global uncertainty may be counteracting this. 35,300 bales were offered last week, with a passed-in rate of 6.7%.
Looking online, 760 bales sold for the week, with 89 different grower brands finding buyers. Online 16µ and 17µ micron fleece wool sold to a top of 1304c and 1480c greasy or 1816c and 1907c dry. 18µ and 19µ micron fleece wool was the most popular online this week, comprising 43% of all purchases and sold to a top of 1361c and 1345c greasy or 1847c and 1818c dry. 20µ and 21µ micron fleece wool sold to a top of 1305c and 1205c greasy or 1795c and 1769c dry.
77 bales of XB wool and fleece sold to a top of 1078c greasy or 1441c dry. The top-priced lot sold online this week was a line of 17.8µ micron AAAM Merino fleece wool, which had 1% vm, and was 81mm in length.
This lot was branded GREENBROOK, offered by WGM wool and sold for 1480c greasy or 1907c dry. 36,000 bales are to be offered in the coming week.
This weeks auctions will indicate if the upward trend will continue, or if the past week’s results have overstepped the mark for the short term.