Over the last week, New Zealand and Australia reports indicated a firmer wool market.
New Zealand Wool Services International Ltd reported that prices for most types of wool were up, despite an unfavorable currency movement. Although the weighted indicator ranking the New Zealand dollar against the main international wool trading currencies was 1.76 percent higher than the previous sale on May 27, which would normally have a negative impact on local price levels, interest in the bulk of wool offering was stronger than anticipated.
A nominal offering of mid-micron fleece, 27 to 30.5 micron, strengthened 2 percent to 4 percent, with prices for the fine crossbreds increasing between 1.5 percent and 3.5 percent. Finer carpet type fleece wools were strongly contested, gaining in price by 6 percent. Coarser good color fleece rose up to 4 percent, with the other styles generally firm. Coarse shears ranged from firm to 5 percent dearer, with poorer styles in the North Island benefiting the most.
The Australian Eastern Market Indicator (EMI) rose 9 cents to AU882 cents/kilogram clean. In U.S. dollars, the EMI rose 3 cents to US733c/kg.
Medium-micron wools were the standout performers in north Australia last week, and in particular, the 19-micron categories, which gained AU30 cents. The 18- to 22-micron categories gained between AU9 cents and AU16 cents while the 16.5- to 17.5-micron categories were firm to unchanged. The 23-micron and 24-micron categories both gained AU4 cents, and coarse and crossbred wools were around AU10 cents higher.