Spirited bidding for Merino fleece and extreme demand for Merino skirtings

Merino Fleece

The market was led by the large Chinese processors and Chinese Indents competing with the Indian and European interests.

Buying from China, away from the indents in the market, remains subdued at best.

Merino Skirtings followed the fleece with the best specified lots at times extreme with all lots increasing over the week.

The AWEX EMI closed on 1256c – up 24c at auction sales in Australia last week.
The first weekly increase in the EMI in just over a month resulted in a 91.5% clearance of the 33,293 bales on offer.

The majority of the price gains came about due to the more advantageous foreign exchange rates, but the slightly improved interest saw how reactive the market is at present to the slightest hint of better demand.

Merino Cardings remained close to the levels of last week with the NR MC rising 4c, the SR MC showing no change and the WR MC posting a 7c gain. Local processors dominated the purchasing in this sector.

The market remains relatively stable whilst we have the low volumes and favourable currency exchange rates.

With the expectation of the post flooding volumes of wool expected to increase substantially either side of the Christmas holiday recess I would think the market will be left wanting unless there is some relief in the Chinese Government Covid lockdown policies.

This week 38,295 bales will be offered nationally.

~ Marty Moses