Australian Wool Market Explodes Past Previous Record
May 11, 2018
The Australian Wool Market exploded into unchartered territory in Week 45. Although overall losses were recorded in the previous sale, positive movement was experienced in the Western Region toward the end of the week. Buyer concern about securing quantity in coming weeks, combined with the weakening of the Australian dollar, helped continue this positive trend.
These factors created strong buyer demand, and the result was sharp upward movements. Despite the offering again consisting of a large percentage of lower yielding, lesser style lots, price increases were felt on all types and descriptions across the entire merino spectrum. By the end of the week, wool was generally selling at levels 60 to 90 Australian cents above those achieved at the previous sale. The Benchmark Eastern Market Indicator rose by 55 cents – the largest weekly increase since February – and closed at 1,891 Australian cents, which easily surpassed the previous record of 1,847 cents set last month.
The individual Micron Price Guides for 20.0, 21.0, 22.0 and 23.0 microns also set new records, beating their previous highs by more than 40 Australian cents. The skirting market followed the lead of the fleece, generally gaining 25 to 50 Australian cents. The largest increases were in wool 18.0 micron and finer, or wool carrying less than 3.0 percent vegetable matter.
The crossbreds had mixed results. Twenty-six to 28.0 micron increased by 5 to 10 Australian cents. Notably, this pushed the 26.0 micron MPG to a new high. Thirty to 32.0 microns were par to 5 cents easier. A limited supply of oddments attracted excellent competition, pushing prices up by 20 to 40 Australian cents with wool finer than 18.5 micron most affected. This was reflected in the three Merino Carding Indicators rising by an average of 26 cents.
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