13 November, 2020
Growers put more wool up for auction
MORE Australian woolgrowers have sent clips to auction, despite last week's market volatility, as the benchmark indicator lifted by 50 cents.
AWEX Senior Market Analyst, Lionel Plunkett, said the Australian wool market had experienced another volatile week with significant upward and downward movements within the series.
“On opening day, strong widespread competition helped to push prices higher across all Merino types and descriptions,” Mr Plunkett said.
“The individual Micron Price Guides (MPGs) across the country added between 89 and 133 cents for the day.
“On the back of these solid increases, the AWEX Eastern Market Indicator rose by 85 cents, which equates to a 7.5 per cent rise.”
But increased price levels reached on the first day could not be maintained in the second.
Mr Plunkett said buyer sentiment had noticeably softened, and so prices dropped.
“By the end of the second day the MPGs in all three centres had lost between 30 and 79 cents, and the EMI fell by 35 cents,” he said.
Despite these losses, the Merino fleece market still recorded overall solid rises for the week.
“The EMI added 50 cents for the series and closed the week at 1188c/kg clean,” Mr Plunkett said.
“The current market volatility is best highlighted in the movement of the EMI over the last ten days. It moved a total of 466 cents, with an average movement of nearly 47 per cent per auction day.”
Mr Plunkett said Merino skirtings had followed a similar path to the fleece.
“Large price increases of between 80 and 140 cents on the first selling day were followed by losses of between ten and 50 cents on the second,” he said.
“The oddments were the only sector to record overall losses, with the three Merino carding indicators dropping an average nine cents.”
Mr Plunkett said brokers passed in 9.1 per cent of last week’s catalogue, but overall price rises had encouraged more sellers to the market.
“Price hikes have led to an increase in next week’s national offering,” Mr Plunkett said.
“Currently there are 42,258 bales available to the trade in Sydney, Melbourne and Fremantle.
“This is an increase of more than 9,000 bales on last week’s 33,248-bale offering.”