The Australian wool market has managed a mini upward run, rising for three consecutive days. On the final selling day of the previous series the AWEX Eastern Market Indicator (EMI) recorded the smallest of upward movements, the 1 cent rise prevented from being larger due to the softening of the other sectors. The positive buyer sentiment evident toward the end of last week, carried forward into the first day of this series, resulting in price increases from the opening lot.
The increases slowly but noticeably increased as the day progressed, continually strengthening all the way to final hammer in the Fremantle market, which sold last. By day’s end the individual Micron Price Guides (MPGs) rose by 10 to 31 cents in the East and by 35 to 49 cents in the West.
As Sydney only sold on the first day, Melbourne opened in isolation on day two and the market continued to rise, albeit modestly when compared to the solid gains achieved on the first day. The Melbourne MPGs rose by 10 to 34 cents, on the back of these rises the EMI added a further 14 cents, to close the week 28 cents higher at 1,545 cents.
The Fremantle region continued to strengthen, the MPGs in the West added another 26 to 36 cents. In a rare turn of events the Fremantle MPGs for 19.5 through to 21.0 micron are sitting above those of the Eastern Centres.
The crossbreds performed better than in recent weeks, solid gains on the second selling day in Melbourne saw the crossbred MPGs add 10 to 32 cents for the series. The large passed-in rates of the previous two months mean there is a growing stockpile of wool sitting in broker’s stores.
The price rises of the past week has encouraged many sellers to market, increasing next week’s national offering to 39,446 bales.