The Eastern Market Indicator (EMI) fell 17 cents to close at 1,803 Au¢/kg, while in US-dollar terms it declined seven cents to 1,262 US¢/kg. The Week 16 sales covered auctions held on October 13 and October 14.
Australia’s wool market eased in Week 16 as 33,265 bales, the biggest national offering in five weeks, tested buyer demand and lifted the pass-in rate to 9.4 per cent.
The EMI fell 17 cents to 1,803 Au¢/kg, or seven cents to 1,262 US¢/kg.
AWI said quality premiums widened, with fine and superfine Merino returns up 25-27 per cent year on year and Week 17 supply forecast at about 26,883 bales.
Trading opened across all three centres on October 13 with a seven-cent fall, although fine Merino wool and better-style, well-measured descriptions continued to attract solid competition. On October 14, Melbourne and Sydney extended the softer trend, with the EMI shedding a further 10 cents, according to the AWI commentary.
The designated Sydney superfine sale showed increasingly pronounced quality differentiation. Almost 18,900 bales of 19.5 micron and finer wool were offered nationally; better style and specification continued to command premiums. Competition was strong from the opening lot, with traders again leading buying and Chinese processors following.
AWI said poorer-specification superfine wool was also not neglected, indicating reasonable underlying demand despite the larger catalogue. It said the comparison showed the strongest benefit has gone to fine and superfine Merino producers, in line with widening premiums across the market.
AWEX’s indicative Woolgrower Returns showed a 185 kg bale of 17-micron wool was worth around $3,103, up $618 or 25 per cent from $2,485 in Week 16 last year. The 19-micron return rose from $2,107 to $2,679, an increase of $572 or 27 per cent; 21-micron wool increased from $1,985 to $2,185, up 10 per cent; and the value of a 28-micron bale rose from $797 to $914, up 15 per cent.
For Week 17, the offering is forecast to fall to around 26,883 bales. Reduced supply may again provide some price support, although buyer selectivity and wider premiums for quality and specification are likely to remain key market features, AWI said.
Fibre2Fashion News Desk (KD)
