Merino fleece posted solid rises from the opening lots offered with the emphasis on the best style and prepared lots and the finest microns.
The offering of 49,431 bales coupled with the sharp rise in the foreign currency exchange rates; the economic impact of the Russian-Ukrainian war; the delayed dumping and shipping logistics; and exporter financial restrictions; have all had negative overtones for this week’s market expectations.
The AWEX EMI closed on 1413c up 6c at auction sales in Australia last week.
The Wednesday, Thursday sale series courtesy of the Labour day holiday in Western Australia actually aided the market, as currency reversed its previous weeks trend at the front end of the week, resulting in better than expected support produced from Chinese Indent operators.
This, in turn, activated the Australia’s largest trading exporters to compete more aggressively and prices for almost all categories ended the week in positive territory. Italian interests were more notable on the best and superior (spinners) style and Non Mulesed Certified lots in certified Integrity schemes.
| Merino fleece posted solid rises from the opening lots offered with the emphasis on the best style and prepared lots and the finest microns.
Reports of an increasing percentage of inferior performing wools being offered weekly has some exporters scrambling to meet the demand for these types.
Up to this point, one of the large Chinese top makers have been able to place these inferior types at appropriate discounts to the market average, however with the seasonal conditions potentially producing more rather than less inferior performing wools the discounts may widen substantially unless more competition emerges on the inferior types.
Merino Skirtings followed the fleece upward trend adding 10-20c on most straight types. Whilst the skirtings discount triggers are Heavy VM, Colour and Cotted wool, due to their nature of a perceived inferior line poorly prepared skirtings may attract more price pressure if the quantity of these types increase. |
Crossbreds held or slightly improved their price position for the well classed low VM fleece and skirtings lots. Conversely the discount for any lots that are unskirted or unclassed, with heavy VM, colour, cotted or containing kemp (composites) continue to be heavily discounted.
Merino Cardings had a mixed week with locks and crutchings reaming well supported in the eastern states and adding 10-20c in Fremantle. Stains were 10-20 cheaper on Wednesday in Sydney, however this could have been an anomaly of quality or quantity.
Crossbred oddments continue to demonstrate a split personality, with the coarse micron oddments struggling and the finer and medium micron categories enjoying reasonable support and prices.
The situation with impaired logistics for wool containerisation and shipping has worsened in the southern region with the major dumping organisation calling for a halt of sales to allow them to clear their backlog.
In my view it seems counterproductive to halt sales completely as the prolonging wool sales usually produces unmanageable quantities creating an avoidable bottle neck.
The problem at the moment is Melbourne centric and reports that Sydney dumps and ports are able to process wool for shipment up to 2 weeks faster than their southern counterparts.
Whilst the solution to the Melbourne dump indigestion is unclear I do not think the answer is adding a week or two to the Easter sale recess. So we have the unusual situation where we have good demand and good supply with the major hurdle to confidence to do business is the uncertainty of logistics.
~ Marty Moses, Moses and Son |
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