The Australian wool market resumed sales this week, after the annual three-week Christmas recess.
The first sale of the new calendar year was another volatile one, with large price fluctuations across the series. This sale is traditionally a larger one, this year the national offering was 52,261 bales.
As a three-day sale was required in Melbourne due to the large quantity, Sydney sold in the unusual pattern of Tue/Wed to avoid Melbourne selling in isolation. From the opening hammer on the first day of selling, it was immediately apparent that large price increases were on the cards. By day’s end all types and descriptions across all merino microns rose by 90 to 140 cents. On the back of these rises, the individual Merino Price Guides (MPGs) in Sydney and Melbourne jumped by 93 to 135 cents. These increases helped to push the AWEX Eastern Market Indicator (EMI) up by 79 cents, this was the largest daily rise in the EMI since September last year.
All three centres were in operation on the second selling day. As the Western region missed out on the price rises of the previous day, the Fremantle market opened very strongly, with general price rises of 90 to 100 cents.
However, midway through the sale, buyers started to continually reduce their limits as they accumulated wool. By the end of the day the price rises had almost completely deteriorated. The downward trend experienced in the West was continued when Melbourne opened on the final day, so much so that the Southern MPGs for 17.5 micron and coarser fell by 27 to 77 cents.
The EMI lost 34 cents for the day. Despite the final day losses, the EMI still recorded overall positive movement for the series, adding 51 cents for the week, to close at 1,609 cents.
Next week’s national offering increases to 59,890 bales.