Wool Continues Last Week’s Rise

The Australian wool market continued on with last week’s rally and lifted the Australian Wool Exchange-Eastern Market Indicator to a 6-cent gain. The rise in the EMI came in spite of a firming Australian dollar, which increased more than 1 cent and finished above 75 U.S. cents. In U.S. dollar terms, the EMI was 2.2 percent higher.

This week was the second to last sale for the 2015/2016 Australian wool season and, with only 22,108 bales offered to the trade, was the smallest national offering in four years. The selection in the Merino Fleece catalog was fairly mixed; low vegetable matter and best style types were in relatively short supply while the balance generally had favorable strength and position of break measurements.

Buying pressure continued to show in the medium and broader microns, which added as much as 25 cents clean over the two days on the back of scarce quantity. Most of the volume was in the finer microns and these barely maintained the price levels of the previous sale. Selected better types still attracted good competition while part-tender types received irregular support.

The smallest offering of Merino skirtings in 12 months were well supported during the sale and were generally in line with the previous week. As with the fleece sector, the few broader microns on offer came under most scrutiny. Crossbreds continued to trend lower, easing 5 to 10 cents this week.