Wool report: Forecast for wool quantity decline in the coming month

Photo: File.
Photo: File.

Week Commencing: 11/02/19

Week 32 was the first designated superfine sale for the north which resulted in the section gaining strong support.

There was a national offering of 39,894 bales and the week saw the Eastern Market Indicator increase 10 cents to close at 1,944c/kg.

It is expected that the coming month will see a decline in quantity and many exporters have looked to secure quantity whilst it is available.

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The northern merino sector saw substantial increases to all micron indicators with the 17- micron indicator rising 40 cents to close at 2,578c/kg.

The 19-micron indicator increased 13 cents and finished at 2,317c/kg while the 21-micron indicator finished at 2,260c/kg after a 11 cent rise.

The crossbred sector also experienced increases with the 26 micron indicator rising 10 cents to close at 1,353c/kg while the 28-micron indicator closed at 1,045c/kg after increasing 21 cents.

The merino cardings for the north dropped 6 cents and finished the week at 1,159c/kg.

Mills are remaining active and most combing mills are booked out to April.

Quantity will continue to influence the market to remain at current levels while mills move more towards crossbreds as a low risk option to stay in operation.

It is expected there will be some hesitancy in the coming months as quality and quantity continues to decline.

Week 33 will see the start of a reduced national offering with 39,520 bales offered for trade.

Sydney will offer 7,483 bales, Fremantle will offer 8,681 bales and Melbourne will offer 23,356 bales across the two selling days.