The AWEX EMI closed on 1250c up 8c at auction sales in Australia last week experiencing a stronger exchange rate as well as dealing with 40,144 bales offering.
Not only did the clearance rate achieve 93%it was able to add 10c to the EMI in USD terms. Competition was dominated by large indent operators especially in the Merino Fleece sector, with spirited bidding by Australia’s largest local Trading exporter. Australian trading exporters were predominantly dominant in the skirtings, Merino Cardings and Crossbred sections.
The week’s larger selection player an integral part in the selective nature of how Fleece types were purchased. The selection in the north was a mixture of styles and specifications which saw the finer MPG’s sell in buyer’s favour.
However, competition on the better style 18 and finer in the southern region favourite the sellers! Melbourne had a healthy selection of best style wools with well specified length & strength measurements and low CVH, which undoubtedly assisted the solid gains in that Centre.
The 19.5 and coarser MPG’s continued to sell into a better price category this week with the southern region 21 and 22 µm MPG’s adding between14cand 25c.
This week competition remained very strong on all skirting types. Skirtings containing between 4% and 6% vegetable matter posted 20c rises on each day. Skirting containing less than 4% VM, with superior specifications attracted solid premiums over and above their average counterparts.
Another solid week for bulky merino locks crutchings and stains in Sydney whilst Melbourne held within 2c, and Fremantle rose by 7c
This week we saw mixed signals coming from the crossbred sector with Tuesday’s market showing signs of weakness in the northern region and southern region however the market consolidated in the northern region on Wednesday whilst the Southern XB’s posted a small price recovery on the previous day!
This week the National offering once again offers 40,831 bales. Sales will be conducted on Tuesday and Wednesday with all centres offering. These larger offerings certainly present challenges for the current fragile state of the industry with demand downstream static.
The current EMI at its highest point since May 23 and the EMI in USD the highest since January 24. Whilst the markets recovery seems painfully slow it reflects the slow recovery in GDP in our wool consuming nations. At the same time inflation is reducing painfully slow.
