 Merino Fleece opened in Sydney with immediate corrections evident as the AUD rocketed up on the announcement from the RBA of holding the official cash rate steady, albeit temporarily.
The 16.5-17.5 fleece lots fell up to 40c for the day with the best style affected, whilst the 18 μ and coarser merino fleece giving back 15-20c. The AWEX EMI closed on 1300c down 18c at auction sales in Australia this week. However, in USD terms the EMI fell 3c to settle on 878, highlighting the impact of the appreciating AUD against the greenback due to the reserve bank of Australia holding the interest rates, breaking the record 10 interest rate rises in succession. A total of 86.3% of the offering was cleared to the trade with Sydney passing in 19.5% of the XB offering and 17.7% of the oddments as sellers refused to accept the lower price basis. The market opened on Tuesday with a sharp downward correction in Sydney and Fremantle down to the levels of the previous Melbourne sale held in isolation. The result was a 12c fall on Tuesday and a 6 c fall on Wednesday. |
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Merino Skirtings saw prices drop 20-30c in line with the fleece but maintained that level throughout the series. With the larger offering and diminishing selection of suitable wools for the demand, quite a few holes in the market were exposed. Crossbreds held up relatively firm for the best style, classed and specified lots which operated within a 5c band of last week’s levels, however with the 19.5% pass in rate top of mind it also indicates a number of price voids in this market segment. Merino Cardings continued their path of diminishing prices with losses, especially the low yielding and heavy VM locks and crutchings. XB oddments remain incredibly cheap however are being traded at this low price basis, as the cost of carry defies an economic case to hold these wool types waiting for the recovery. The market has earned a 1-week recess to allow for the Easter holiday period. However when the market resumes on the 18th April there is over 54,000 bales forecasted to be offered nationally. At this point it is difficult to see any change in the current market sentiment. Wishing you all a safe and enjoyable easter. ~Marty Moses |