The Australian wool market continued to perform erratically in Week 20, recording positive then negative movements within the same series.
The Fremantle region recorded price rises on the last selling day of the previous series, resulting in many of the individual Fremantle merino Micron Price Guides (MPGs) finishing at higher levels than the closing levels of the Eastern markets. From the opening lots in Sydney and Melbourne, prices quickly jumped above Fremantle’s closing levels, then proceeded to slowly but noticeably increase. By the end of the day’s selling the merino MPGs rose by 32 to 65 cents.
On the back of these rises the AWEX Eastern Market Indicator (EMI) add 25 cents for the day, only minimal movements in the crossbred sector preventing the EMI from recording a larger increase. The Fremantle MPGs rose by 25 to 39 cents, bringing all three centres closer to alignment. The second day of selling the market contracted, the individual MPGs across the country lost between 4 and 31 cents. The EMI lost only 6 cents, this time minimal movement in the crossbred MPGs prevented the EMI from a larger loss. Despite the second day losses, the EMI still managed to record an overall positive movement for the series, rising by 19 cents, to close the week at 1,574 cents.
Worth noting, due to currency movement, when viewed in USD terms, the EMI had only a 2 cent rise. The crossbred sector had a lacklustre series, the crossbred MPGs recorded minimal change, generally between 5 and 10 cents of the previous MPGs, with movements in both directions. The skirtings followed a very similar path to the fleece, price rises on the first day, followed by losses on the second. The price rises have enticed some sellers back to the market, the national quantity increases for the following week.
Currently, there is 40,726 bales available for sale in Sydney, Melbourne and Fremantle.