Dramatic fibre price rise
Wool prices soar on back of tough season
COMPETITION keeps coming as wool sales soared to new heights last week.
The Eastern Market Indicator finished on Thursday at an all-time high of 1891c/kg clean, achieving an extraordinary rise of 55c/kg for the week. Landmark north-eastern regional wool manager David Hart said the action centred on medium merino micron indicators 19 to 22, while the super fine end remained steady.
“We were taken by surprise with the strength of the rise,” Mr Hart said.
“The market is at an historically high level, so it raises the question: just how high can it go?”
The 20-micron range led the largest increase, climbing 94c in Sydney to close the week at 2074c/kg.
In the west, the 18-micron range lifted by 90c to reach 2346c/kg and the 22-micron range by 82 cents to close at 2029c/kg.
“What makes the rise even more remarkable is that it’s occurring at a time when the wool on offer is very poor and that quality is drought-induced,” Mr Hart
❝makes What the rise even more remarkable is that it’s occurring at a time when the wool on offer is very poor and that quality is drought-induced. — David Hart
said.
“Generally, the quality of the wool passing through is low-yielding, very tender and the vegetable matter levels are quite high.”
Mr Hart said crossbreds at the 30-micron indicator remained steady, while the 28 micron indicator lifted back to record levels seen eight to 10 months ago.
In Melbourne and Sydney, 28-micron closed at 999c/kg for the week. Of the 37,842 bales on offer, 36,956 were sold and just 2.3 per cent passed in.
“With the record low pass-in rates, growers are obviously taking those prices with both hands,” Mr Hart said.
“Given the state of the season over a very large part of eastern Australia, there is no doubt supply will fall. Only time will tell the degree of that fall.” Mr Hart predicts continued strength of buying in next week’s sale.
“Already exporters are actively taking inquiries on purchases for next week, and that’s a good sign for the short term,” he said.
According to the Australian Wool Innovation’s weekly analysis, this week has lifted overall wool values to 23 per cent dearer than last year.
“At these good sheep meat, lamb and wool price levels, wool producers are intent on keeping their numbers of sheep as high as possible and are presently dedicated to feeding daily to ensure the core breeding flock is kept intact,” the analysis said.
Next week a similar figure of 38,000 bales are catalogued for sale.