Wool traders anticipate better trading conditions leading into Christmas recess

Merino Fleece prices continued to increase across the entire Merino MPG’s with the northern region increases of 34c-59c measured whilst the Southern region added 18c-42c.

The better style and specified types were pushed more aggressively however all merino fleece types enjoyed the price increase.

I suspect there may have been a little more strategic stock taking by the traders increasing their inventory, in anticipation of better trading conditions leading into the Christmas Recess.

Merino Skirtings mirrored their fleece counterparts upward price increases with low VM best styles favoured for specialty orders. Once again, most lots were well supported in this sector as we suspect some exporters would be building inventory in anticipation of a solid finish to the 3 remaining sales in 2023.

Crossbred Combing types came under considerable price pressure as weekly volumes in this sector continue to increase. A 25c drop in the 26 MPG was the most noticeable movement in this sector, with the 28&32 MPG’s falling between 5 – 7c (Southern Region)

The AWEX EMI closed on 1170c up 19c at auction sales in Australia this week. The welcomed confirmation of last week’s 23c rise we now see the EMI almost back to the season opening number at 1176c. 95.2% of the 43,688 bale offering was cleared to the export participants.

Business conditions seemed to have firmed up with the increased buying pressure initially instigated from Chinese interests, which in turn activated a slight increase in orders as well from Italy and India.

It is felt the reason for the upswing in the EMI is principally to secure some pre-christmas supply, allowing deliveries to the Chinese mills around the Chinese New Year holiday in early February.

The magnitude of the markets performance whilst seemingly ordinary should be seen in the light of the currency exchange increase, which has seen the AUD increase from .646 to .659 against the USD, and the EMI in USD increase by 19c this week after a 24c rise last week.

Merino Cardings were also oblivious to the price increases in merino fleece and merino skirtings categories. Each centre posted minor movements each day, amounting to a 3c increase in the Eastern states, and a 6c increase in the West.

XB Oddments remain at or near historic low prices, whist selected lots in the XB lambs and weaner category occasionally shop some promise of a slight recovery.

Commentary: This week’s offering is projected to be 49,134 bales in Melbourne, Fremantle and Sydney, which is a designated Superfine sale. I get the feeling that despite next week being the largest offering in 8 months, we will see a continuation of the support seen over the past few weeks.

~Marty Moses, Moses and Son