Weekly Wool Market Report: EMI closes 9 cents up 13/08/18

Week Commencing 13/08/18

Photo: File.

Photo: File.

Week 06 saw the solid return to wool sales after the annual three-week mid-year recess with an offering of 49,415 bales nationally.

Due to the large offering Melbourne and Sydney resumed sales Tuesday with Fremantle resuming Wednesday.

Initially Tuesday saw buyers more cautious whilst gauging the market however as the sale continued on through the week the market became dearer as buyer confidence grew.

The Eastern Market Indicator closed 9 cents up finishing at 1,990c/kg, 440 cents dearer comparatively to this time last year.

The rise was seen in the finer microns and cardings with increased buyer demand however the broader microns and crossbreds saw a drop in all micron categories by the end of the week with reduced buyer demand.

The 17-micron indicator for the north rose 23 cents finishing at 2,816c/kg.

The northern 19-micron indicator increased 10 cents closing at 2,292c/kg and the 21-micron indicator for the north saw a drop of 14 cents finishing at 2,210c/kg.

The crossbred 26-micron indicator dropped a significant 89 cents to finish at 1,430c/kg and the 30- micron indicator fell 35 cents to close at 648c/kg in the north.

The merino cardings indicator rose 13 cents to close at 1,466c/kg.

The main concern for the wool market is for supply, especially medium micron types as the dry conditions continue driving average microns finer.

In the short term the strong cashmere market is supporting the fine merino supply maintaining strong demand.

Cardings are thought to remain at their current comfortable level with the crossbreds still experiencing volatile pricing until they find their base.

Overall current trends are set to continue with sheep numbers and dry conditions set to determine coming volume.

Farmers have been doing a good job at keeping their flock numbers despite the drought however as the dry conditions continue supply will change with increased pressure put on receiving spring rainfall.

Week 07 will see a drop in volume with sales returning to Wednesday and Thursday with a national offering of 37,290 bales.

Fremantle will offer 4,248 bales Wednesday with Melbourne offering 19,826 bales and Sydney will offer 13,216 bales across both Wednesday and Thursday.