Wool Report by Moses and Son

Written by: Moses & Son

Wool Report by Moses & Son

The AWEX EMI closed on 1291c - up 89c at auction sales in Australia this week. Due to the Australia Day holiday on Tues-day 26th, sales commenced on Wednesday in all centres, and the result was an astounding 72c rise on the opening day. The seller response to the sharp rise was predict-able, with 94.2% of the 40,000 bale offering cleared to the trade after 4.7% of the original offering was withdrawn.

Merino Fleece opened immediately in the sellers favour with aggressive buyer activity driving the 16-19µ prices which skyrocketed up by 120-140c. The broader microns fol-lowed in hot pursuit, adding 100-110c com-pared to last week’s closing quotes.

Merino Skirtings followed the fleece with sub 19µ skirts up 80-100c for the day. The low VM 18.0µ and finer attracted as much as 130c more than last week’s close, whilst the broader were generally 60-80c dearer.

Crossbreds opened tentatively compared to the merino market, however Thursday saw more urgency on the best style and prepared lots which added a total of 50-70c on the 26-26µ MPGs and 30-45c on the 29-32 MPG’s.

Merino Cardings were also keenly sought after with opening day MC posting a 75c in-crease. Support for the <19µ locks, crutchings and stains 80-100c dearer whilst selected lots 17.5 and finer increased by up to 130c.

Crossbred oddments started to experi-ence some improved support this week. Wool futures got ahead of the price curve early in the week, offering premium prices on 19µ and 21µ contracts in excess of the cash price which eventually attracted sellers at prices ranging from 1450c all the way up to 1570c for 19 MPG and 1260c for 21 MPG as the market evolved.

What is driving the new passion for our woolclip, as the world (predominantly the Northern Hemisphere) continues to grapple with COVID-19 and its impact at retail. With China being virtually 90% of our export market, one suspects that it could be either an improved environment for their on-line sales of woollen knitwear, the anticipation of increased sales of lightweight casual wear ahead of the Northern Hemisphere Spring or (my guess only) possibly a pending announcement from the Chinese Government on uniforms.

Time will reveal if the market is sustainable or another short term flash in the pan.

Next week 46,824 bales will be offered in Sydney, Melbourne and Fremantle, and the early expectations are for a market with some price retracement on the 16-17.5 MPG’s and price maintenance on the re-maining sectors.

Bluechip Livestock - Target

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