Australian Wool Fired Up as Market Rebounds
August 31, 2018
The Australian wool market recovered some of last week’s losses with an uplift of 22 cents in the AWEX Eastern Market Indicator this week. The auctions were scheduled in a typical Wednesday-Thursday pattern, however, a large warehouse fire and associated evacuation zone around the Melbourne auction facility on Thursday resulted in a postponement of that sale day to Friday.
It was one of only three Friday sales in the history of AWEX (since 1995) and the first postponement of a sale since the Sept. 11 New York terrorist attacks in 2001. The market increased progressively during the series, resulting in rises of 10 to 50 Australian cents for Merino types on the east coast. The movements for Fremantle showed losses approaching one dollar for the 20 to 21-micron range, however, this was compared to its previous sale held a fortnight earlier. A designated Australian superfine sale in Sydney this week was timely given a focus on the finer microns where significant premiums were paid for spinner styles and higher strength types in the ultrafine range.
Merino skirtings were similarly in high demand, particularly the well-classed better types exhibiting low vegetable matter and good length. The smallest crossbred catalogue for the season saw prices firm by around 10 cents through the three days. Merino carding types added to recent gains with further rises this week.
Improvements of 40 to 60 Australian cents pushed all three Merino Carding Indicators into record territory, beating the previous benchmark in January.
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