With falling production and the lack of greasy stock throughout the pipeline, we can expect to see a bumpy road ahead with price largely dictated by the hand to mouth ordering pattern of the early stage processing sector.
Northern Region Indicator gained 37 cents this week, to close at 1298. The improvement came on the back of renewed interest following the issuing of new Chinese uniform orders last week during the recess.
Also adding to this week’s positive vibe was the first ever Australian wool sales being held as a feature of the International Wool Textile Organisations (IWTO’s) annual conference, which saw a record 422 delegates attend from 28 countries.
Tuesday’s Sydney only sale saw the finer MPG’s gain 30-40 cents with the lower spec types most affected, while the medium to broader microns posted rises of 40-70 cents.
Wednesday’s market saw a further 10 cents added at the finer end, while 19 microns and broader gained an additional 15-20 cents.Wednesday sale was the opening sale in Melbourne & Fremantle and as a result both centres played catch-up rising 30-40 cents in the finer microns and 60-70 cents in the medium to broader microns.
On Thursday, no sales were held in the North and a more tentative mood left Melbourne and Fremantle to close 5-10 cents cheaper across most micron price guides.
With falling production and the lack of greasy stock throughout the pipeline, we can expect to see a bumpy road ahead with price largely dictated by the hand to mouth ordering pattern of the early stage processing sector.
Next week’s sales will be held in all three centres with volumes originally forecast at 43,960 bales, however this week’s rise will flush extra bales onto the market and as a result the sale will be larger than originally forecast.
-Jemalong Wool