|Whilst the current greasy wool market has found a temporary comfortable trading level for export the outlook seems to indicate a sustained recovery in the next 6 to 10 months.
Held stocks of greasy wool on farm and in brokers stores, and reports of unsold stocks of tops and yarn in China and Europe may further push back any sustained recovery for the wool market.
The AWEX EMI closed on 1129c, down 10c at auction sales in Australia last week. After a 3-week period of low rises or firm EMI’s the fall was disappointing, however the slightly larger offering of 44,378 bales still managed to clear at an impressive 90.6%.
Merino Fleece was expected to remain relatively firm and for the first hour of selling it looked like that expectation was achieved for the 17.0, 17.5, and 20 MPG’s, however the afternoon sessions saw all centres post small to medium falls across the 16.5 µ– 22µ MPG’s.
Wednesday’s sale saw moderate falls. Premiums for the Non-mulesed lots in Certified Integrity Schemes were low with the average price premiums recorded between 1% and 3%.
Merino Skirtings opened generally 10c cheaper and maintained that level for the remaining time for much of the skirting selection. Whilst there was spirited activity for the best prepared, low VM and specified lots a few low style and/or specified lots closed substantially cheaper.
Crossbred the selection of XB Fleece and Skirtings offerings are increasing in volume week on week, especially in the southern region. Last week saw the 28-30µ offering generally maintain last week’s levels with some price disparity on the 25-27µ poorly prepared and specified lots.
Merino Carding also held their prices firm this week from an extremely low base, reflecting ongoing low demand for carding wool. Crossbred oddments remain hard to sell especially the 26µ and coarser locks crutching and Stains.
Commentary: The majority of the world economies continue to struggle with inflationary pressures creating increased costs of doing business and meeting the cost of living pressures that have evolved in the post covid.
The exception is China which relies heavily on processing raw products for export into the major markets in Europe, US and Asia Pacific regions.
This week ‘s sale is pushed back to a Wednesday-Thursday series due to the public holiday in Melbourne for the Horse Race that stops the Nation being held on Tuesday.
The offering increases slightly to 45,246 bales with Sydney being a designated superfine sale. Once again, the early market intelligence indicates the market should remain relatively firm for the next few weeks.