The weekly wool chat with Will Chaffey

Week starting 11/9/2017

Elders district wool manager for the central west NSW, Will Chaffey. Photo: Belinda Soole

Elders district wool manager for the central west NSW, Will Chaffey. Photo: Belinda Soole

Losing only 2 cents last week the Eastern Market Indicator finished at 1,556c/kg, continuing to remain at its 100 th percentile for the past 5 years.

With almost 41,000 bales offered nationally last week, there was an overall 5 percent pass in rate, with Sydney’s sale experiencing the lowest ratio out of the three selling centres.

Continuing in the North, Micron indicators finer than 19 microns felt corrections from 20 to 50 cents, with the 18 micron indicator falling 47 cents to settle at 2,139c/kg.

19 and 21 indicators remained relatively unchanged at 1,839c/kg and 1,597c/kg respectively.

While crossbred wool strengthened with the 26 micron indicator finding 16 cents, to finish the week at 1,141 c/kg.

Last week a higher exchange rate camouflaged a solid effort by the wool market in US dollar terms.

The supply chain is working out how to accommodate the new, higher greasy wool prices of 2017.

This will entail a greater interest in cheaper wool from other sources, some changes in apparel to account for increased coloured fibre from the cheaper wool and some change in the amount of wool used.

This process takes time, so wool prices are likely to drift along until the supply chain has worked out who will accommodate the new higher prices and how much demand will shrink for those who cannot accommodate the higher prices.

This week will see 44,281 bales offered nationally, with 13,476 to be offered in Sydney, 22,609 in Melbourne and the balance to be offered in the West.